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Major US City Bans Wells Fargo For One Entire Year After Scandal

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Robert Donachie Capitol Hill and Health Care Reporter
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The third largest city in the United States banned Wells Fargo citywide for one year following last month’s phony account scandal.

Wells Fargo received a $185 million fine from the Consumer Financial Protection Bureau in early September for opening up millions of fraudulent accounts and issuing over half a million credit cards without customer consent. (Wells Fargo Just Got Hit With The Largest Fine In CFPB History)

The Chicago City Council approved a one year suspension on Wells Fargo operations within Chicago city limits on Wednesday afternoon, Reuters reports.

While Chicago may be the first major city to suspend business with Wells Fargo, two entire states have already taken such measures. California State Treasurer John Chiang said the bank is suspended from operating statewide for the next year, and Illinois Governor Bruce Rauner slapped Wells Fargo with an “until further notice” suspension, according to Reuters.

The bank fired 5,300 employees over the past half decade due to illegal sales practices. CEO of Wells Fargo John Stumpf said the bank would eliminate “product sales goals because we want to make certain our customers have full confidence that our retail bankers are always focused on the best interests of customers,” Wells Fargo tells The Daily Caller News Foundation.

Stumpf also faced a pummeling in the Senate Committee on Banking, Housing and Urban Development Sept. 20. Following the Congressional hearings, the board of Wells Fargo moved to force Stumpf to give up $41 million, a figure amounting to one-quarter of his total earnings from Wells Fargo over the past four decades. (RELATED: Wells Fargo CEO To Lose $41 Million)

Not every one, or every city, is happy with the extent of the punishment and reparation payments the bank has incurred over the past month.

The bank collected $19 million in fees alone in Chicago since 2005.

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