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Chicago suspends business with Wells Fargo

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Chicago suspends business with Wells Fargo

The Chicago City Council suspended the city's business withWells Fargo & Co.for one year following its accounts scandal, Reuters reported.

The suspended services include bond underwriting, brokerageand trustee. The company has recorded $19.5 million in fees since 2005 fromChicago, the outlet added.

Wells Fargo has underwritten $4.7 billion in debt issued bythe city and its sister agencies, including $1.6 billion where the companyacted as a senior-manager, according to a company news release.

"Wells Fargo is disappointed that the Chicago CityCouncil has chosen to suspend a relationship with one of the nation's safestand strongest financial institutions at a time when the city needs access todependable financial partners," the release noted. The company also notedthat it managed the city's business through its Government & InstitutionalBanking division, separate from the retail bank division.

California has already suspended its business with the company for the next 12months, while Illinois' and Maryland's treasury office are alsoconsidering cuttingbusiness ties with scandal-stricken Wells Fargo.