Analyst Note| Eric Compton, CFA |
Wells Fargo has been warned by the Office of the Comptroller of the Currency and the Consumer Financial Protection Bureau that they may bring new sanctions against the bank due to a lack of progress on existing consent orders, according to a Bloomberg report. This is obviously disappointing news, although nothing official has happened yet. We noted during last quarter’s earnings call that CEO Charles Scharf’s overall commentary on the regulatory issues had changed to something that sounded more negative, highlighting that the bank is still on a multiyear journey and that there may be setbacks along the way. The company’s latest 10-Q filing was also updated in a similarly negative fashion. This may be what was being foreshadowed.