Wells Fargo Alert: Shares fall Friday after filing warns ‘significant increase’ in unauthorized accounts

https://www.cnbc.com/2017/08/04/wells-fargo-shares-fall-after-filing-warns-may-find-significant-increase-in-unauthorized-accounts.html

Wells Fargo shares fall after filing warns may find ‘significant increase’ in unauthorized accounts

Tim Sloan, Chief Executive Officer of Wells Fargo & Company

Lucas Jackson | Reuters
Tim Sloan, Chief Executive Officer of Wells Fargo & Company

Wells Fargo shares fell Friday after a filing with the U.S. Securities and Exchange Commission showed a new review of the bank’s consumer sales scandal could reveal a “significant increase” in unauthorized accounts.

“We expect that our review of the expanded time periods … may lead to a significant increase in the identified number of potentially unauthorized accounts,” the firm said in the filing. “However, we do not expect any incremental customer remediation costs as a result of these efforts to have a significant financial impact on the Company.”

Wells Fargo said in the filing it expects legal costs could exceed what it has already set aside by $3.3 billion.

“To regain the trust we have lost, we must continue to be transparent with all our stakeholders and go beyond what has been asked of us by our regulators by reviewing all of our operations —leaving no stone unturned — so we can be confident we have done all that we can do to build a better, stronger Wells Fargo,” CEO Tim Sloan, who took the position in the wake of the sales scandal, said in a separate press release Friday.

Shares traded 1 percent lower.

Wells Fargo one-day performance

Source: FactSet

Wells Fargo said it has expanded the review to “cover the entire consent order period of January 2011 through September 2016, and to perform a voluntary review of accounts from 2009 to 2010.” The firm expects to complete the review by the end of the third quarter of this year.

The Consumer Financial Protection Bureau (CFPB) has also begun an investigation into whether customers were affected by Wells Fargo’s freezing and, in many cases, closing, of consumer deposit accounts, the filing said.

 

4 Responses

  1. The rules and laws have been on the books for years. Regulators, get out of the break room, do the work we taxpayers are paying you to do.
    My story – paying somebody through WF but WF doesn’t even have the most rudimentary title to prove we should even be paying them or Freddie M or . . . who knows who ultimately is getting our money.
    This thing with WF is no longer a few whiffs of smoke , this is a
    d— forest fire !

  2. Pretty cool! I found out I have two MORTGAGE accounts.

  3. amazing universe! we consumer are little people been reject by Wells Fargo, now what’s goes around comes back around. Denied modification for B.S. reason, sold us to BSI to let situation get out of control, lost our resident, elderly frail! Shame on WF! lack of dignity no pride unethical! cheap character! they don’t have it! they treating us like (Drop dead)!

  4. Just more corruption Why aren’t these assholes in jail

    Sent from my iPhone

    >

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