Wells Fargo

[brattzz]

ok, finally someone feels it's not right, change CEO?

[BlueKelah]

Bopian really change CEO

Wells Fargo CEO Stumpf Quits in Fallout From Fake Accounts
John Stumpf, who led Wells Fargo & Co. through the financial crisis and built it into the world’s most valuable bank, stepped down as chief executive officer and chairman, bowing to public outcry over legions of accounts opened by his employees for customers who didn’t request them.

[brattzz]

waos.... is america leading the charge for ethical leadership in banking sector after the 2009 GFC?!!

[weijian]

Wall Street isn’t sure what to think. Wells Fargo’s stock has regained the $30 billion it lost, which is as much a sign of optimism about deregulation in the new administration as anything. But “we gave them too much credit for being Superman in the banking industry,” says one major investor. “Now the cape has come off, and Wall Street is realizing they are just like everyone else and no better than anyone else.”

HOW WELLS FARGO’S CUTTHROAT CORPORATE CULTURE ALLEGEDLY DROVE BANKERS TO FRAUD

Most Americans have assumed their bank accounts are sacrosanct. But with the major scandal unfolding at Wells Fargo, angry former employees illuminate the alarming pressure that allegedly led local bankers to defraud perhaps more than a million customers.

http://www.vanityfair.com/news/2017/05/w...ture-fraud

[weijian]

Didn't follow too closely with the Well Fargos issue. But seems like the fall out is gettting contagious - After the falsification of new accounts/credits to overcharge retail customers, there seems to be a new fall out (admitted in late July) for auto insurance. Will there be more skeletons drawn out from the closet?

Wells Fargo: What It Will Take to Clean Up the Mess

http://knowledge.wharton.upenn.edu/artic...lean-mess/

[dreamybear]

WFC, 5th largest holding in Berkshire, is now badly beated down to P/E < 10, P/B < 1.1.
https://www.reuters.com/companies/WFC.N/key-metrics

Although Berkshire has been reducing its stake in WFC recently, the sell down does not seem to be specifically due to the fake a/c scandal. In the interview, WB mentions the commercial bank earn btw 12 - 16% net tangible assets and are fantastic businesses !
https://finance.yahoo.com/news/warren-bu...15520.html
Note, for the full interview, pls refer to karlmarx's post.

Issues to consider
https://www.channelnewsasia.com/news/bus...o-12328862

WB's take on BOA(2nd largest) seems to be in contrast with WFC  ....
https://sg.finance.yahoo.com/news/berksh...38654.html

Cld this be a rare opportunity to own one of Berkshire's core holdings, since value investors take a long term view - Thoughts anyone ?

https://www.cnbc.com/berkshire-hathaway-portfolio/

[karlmarx]

I thought it's quite obvious what his selling implies about the long-term quality of WF.