Although Wells Fargo had a relatively successful first quarter the company
is now coming out and stating that due to a billion dollar settlement in consumer
business its progress this quarter is short lived. Wells Fargo has suffered
extensively in the past year due to the very public scandal of unethical sales
practices in their consumer banks, making them face large examination by the
U.S Department of Justice. Shares of Wells Fargo fell 2% this week, and have
already dropped over 13% this year. This would be the second quarter in a row
that the company’s finances have been drastically affected by a legal charge. I
am curious how long it will take for Wells Fargo to bounce back after this scandal
and what drastic measures it will take.
https://www.bloomberg.com/news/articles/2018-04- 13/wells-fargo- s-revenue-
beats-estimates- despite-punishment- by-fed
2 comments:
I think this is an interesting article on the performance of Wells Fargo which is one of the largest US banks. With the recent changes in Trump's economic policy and foreign policy I am curious about the implications this would have on the US banking system!
After the scandal, it looks like Wells Fargo is suffering the consequences of its malpractice. Although it has led to plunging finances and a decrease in shares I think they serve as a good example for other banks of what might happen if they tried to find illegal loopholes too. Hopefully this will deter any other kinds of related scandals.
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