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Wells Fargo & Co WFC

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Regulators Reportedly Still Disappointed With Wells Fargo, Increasing Time Horizon Risk

Eric Compton, CFA Senior Equity Analyst

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.

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Company Profile

Business Description

Wells Fargo is one of the largest banks in the United States, with approximately $1.9 trillion in balance sheet assets. The company is split into four primary segments: consumer banking, commercial banking, corporate and investment banking, and wealth and investment management. It is almost entirely focused on the U.S.

Contact
420 Montgomery Street
San Francisco, CA, 94104
T +1 866 249-3302
Sector Financial Services
Industry Banks - Diversified
Most Recent Earnings Jun 30, 2021
Fiscal Year End Dec 31, 2020
Stock Type Cyclical
Employees 268,531

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