Illinois joins California in suspending business with Wells Fargo

SPRINGFIELD, Ill. -- Illinois state Treasurer Michael Frerichs says Wells Fargo (WFC) will lose millions of dollars in fees after the state suspended $30 billion in investment activity with the troubled bank Monday.

The move by Illinois comes five days after the California treasurer made a similar announcement, saying he was suspending much of the state’s business ties with the San Francisco bank, which has been based in California since 1852. 

Frerichs made the announcement at a news conference in Chicago after U.S. and California regulators fined San Francisco-based Wells Fargo $185 million. A federal consent order found employees trying to meet sales targets opened up to 2 million accounts without customers’ knowledge.

Nearly a week ago, Wells Fargo’s board said CEO John Stumpf and the executive who ran the consumer banking division would forfeit tens of millions of dollars due to the bogus account scandal that erupted earlier last month.

Wells Fargo spokesman Gabriel Boehmer says the company has worked with Illinois since 1970 through operations separate from the retail bank blamed for the wrongdoing.

Boehmer says Wells Fargo is sorry for the retail bank incidents and has taken steps “to address these issues and rebuilding the state’s trust.”

The bank also issued an apology after California made its announcement on Wednesday.