DOJ, OCC Subpoena Wells Fargo for Account Records; FiNet Adds $3B Advisory AUM
WFC is trading near its 52-week low of $71.93 (14% above the low).
Summary
The Department of Justice (DOJ) and the Office of the Comptroller of the Currency (OCC) have subpoenaed Wells Fargo for customer account records, specifically regarding denied or closed accounts over the past year. This regulatory action introduces a new risk factor for the bank, which has a history of issues related to account practices. While Wells Fargo's FiNet division also added $3 billion in advisory Assets Under Management (AUM) in May, the potential implications of the subpoena for future fines or operational restrictions are more significant. This development contrasts with recent positive news regarding strong Q1 earnings and capital strengthening.
At the time of this announcement, WFC was trading at $81.82 on NYSE in the Finance sector, with a market capitalization of approximately $250.8B. The 52-week trading range was $71.93 to $97.76. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: Wiseek News.