When Will Wells Fargo’s Scandals End?
July 30, 2018 By Janet Levaux, Investment Advisor magazine As the bad news and advisor departures continue, experts debate Wells Fargo's future and what the wealth industry can learn from its scandals. 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 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...
