Topic: How To Invest

Wall Street Stock Forecaster Hotline – Friday, February 9, 2018

Article Excerpt

WELLS FARGO & CO., $56.13, New York symbol WFC; is the third-largest U.S. bank, after J.P. Morgan (No.1) and Bank of America (No. 2), This week, the U.S. Federal Reserve ordered the bank to halt any activity that would increase its total assets. They equalled $1.95 trillion as of December 31, 2017. The Fed put the restriction in place because of the 2 million unauthorized accounts the banks employees opened in an effort to meet sales targets. That activity came to light in September 2016. Wells Fargo now has 60 days to submit a new plan to prevent future abuses. The Federal Reserve also ordered it to replace four of its 16 directors by the end of 2018. Since the situation, the bank has fired the employees who falsified documents and beefed up its oversight procedures. Wells Fargo has sufficient flexibility in its corporate deposit operations to comply with the asset cap. Even so, those restrictions will likely cut its 2018 after-tax earnings…

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