July 13, 2018, was a bad day for Wells Fargo. Its second-quarter earnings and revenues missed analysts’ expectations, loans and deposits dropped over the past
year, and its stock price fell 1.2%. Meanwhile,
net income at the Wealth and Investment
Management unit sank 37%.
The bank revealed that it has set aside $114
As the bad news and
million for refunds to wealth clients tied to
“incorrect fees being applied to certain assets
and accounts … during the past seven years,”
according to CFO John Shrewsberry. During
a call with equity analysts, he explained that
the third-party review of its client accounts
continues “to determine the extent of any
additional necessary remediation, including with
respect to additional accounts not yet reviewed.”
In other words, stay tuned.
continue, experts debate
Wells Fargo’s future
and what the wealth
industry can learn
from its scandals.
It End? By Janet Levaux Photo-illustration by Chris Nicholls