Markets & News

Chicago to Pull $25 Million From Wells Fargo Because of Scandal

Chicago Treasurer Kurt Summers plans to divest $25 million the city has invested with Wells Fargo & Co. after the company admitted to opening potentially millions of bogus client accounts, joining state officials who have pulled business from the bank because of the scandal.

Summers, whose office manages the city’s $7 billion investment portfolio, plans to “unwind these assets as expeditious as possible in a fashion that is prudent and will protect taxpayer money,’’ according to a statement from his office sent to Bloomberg News.

“Today, the Office of the City Treasurer is proud to stand with working families from Chicago and across the nation by divesting in Wells Fargo & Co.,’’ according to the e-mailed statement. “Chicago deserves better.’’

 

The move comes amid mounting pressure on Wells Fargo, which is facing a national furor over the fake accounts debacle. Illinois followed California last week in penalizing the bank. Illinois Treasurer Michael Frerichs plans to announce details Monday of his plan to suspend Wells Fargo from state investment work.