Illinois state Treasurer Michael Frerichs says Wells Fargo will lose millions of dollars in fees after the state suspended $30 billion in investment activity with the troubled bank Monday.
Frerichs said at a news conference in Chicago that Illinois will stop using Wells Fargo as a broker-dealer to purchase investments because of illegal practices by the nation's second-largest bank. The Democrat says he will re-evaluate the bank after one year.
U.S. and California regulators have fined San Francisco-based Wells Fargo $185 million, saying employees who were trying to meet sales targets opened up to 2 million fake accounts without customers' knowledge. The abuses are said to have gone on for years, unchecked by senior management.
Federal regulators have not said if they have referred the Wells Fargo case to the Department of Justice.
On Friday, two Chicago aldermen proposed banning the city from doing business with Wells Fargo for the next two years.
Frerichs says he doesn't know precisely how much Illinois' action will cost Wells Fargo.