Scandal-plagued Wells Fargo’s road to recovery will be long and painful — marked by cost-cutting and more layoffs than originally forecast. Not surprisingly, Wells Fargo's struggles could force some serious belt tightening. It’s the city’s second-largest employer. News of the Wells Fargo layoffs was leaked ahead of any announcement.Insiders tipped journalists off to the layoffs taking place in Charlotte, N.C. … Save Username Checking … Wells Fargo is the fourth largest bank in the USA if measured by asset size and the second largest bank if measured by market capitalization. JPMorgan's, on the other hand, dipped only 4%. Wells Fargo is such a mess that it's being forced to slash its coveted dividend. Password. (AP Photo/Mark Lennihan) Business News. You must click the activation link to complete your subscription. A source tells CBS News that 100-125 workers were shown the door. Disclaimer. News. During the Great Recession, Wells Fargo was so strong that it was among the last of the banks to touch its dividend. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. Wells Fargo is expected to announce major layoffs across the board. Username. Get breaking news stories and in-depth coverage with videos and photos. "It's a range of things that have been part of our public disclosures the past few years," he said. All rights reserved. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. By completing your subscription, you are providing consent to Wells Fargo Newsroom to send you email alerts and you are agreeing to our Digital Privacy and Cookies Policy. NBC News reported that Wells Fargo had placed customers into a program, without their permission, that suspended payments on federally backed … The bank, based in San Francisco, said Friday that it had earnings of 64 cents per share, compared with earnings of 60 cents a year earlier. "Our financial underperformance is because leadership didn't make the difficult decisions necessary.". Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Wells Fargo (ticker: WFC) posted earnings of $3.0 billion, or 64 cents a share, on revenue of $17.9 billion. Wells Fargo has agreed to pay $7.8 million in back pay after being accused of hiring discrimination against more than 34,000 Black applicants who … About Wells Fargo & Co.: Wells Fargo & Company is a large global banking and financial services holding company with main office located in San Francisco, CA. End of popup. New York (CNN Business)Wells Fargo has gone from one of America's strongest big banks to easily the weakest. Morningstar: Copyright 2018 Morningstar, Inc. All Rights Reserved. Get the latest Wells Fargo & Company (WFC) stock news and headlines to help you in your trading and investing decisions. Wells Fargo's operating losses jumped by $755 million during the second quarter because of "increased customer remediation accruals for a variety of matters and higher litigation accruals.". Finance News. Asked by CNN Business what the "remediation" refers to, John Shrewsberry, Wells Fargo's chief financial officer, said during a conference call with reporters that it's not directly related to the millions of fake accounts that were opened. Wells Fargo has provided this link for your convenience, but does not endorse and is not responsible for the content, … Wells Fargo's share price has collapsed by a staggering 54% this year, far worse than the 35% drop for the, Banks make money off the spread between interest charged on loans and what is paid out on deposits. The, Brian Kleinhanzl, analyst at KBW, warned clients in a note Tuesday that Wells Fargo's dividend could shrink further because "there is not much breathing room.". "It should be the end of it from my perspective.". "We're extremely disappointed to take this action and do understand that many rely on this stream of income," Scharf said during the call. For your security, we do not recommend using this feature on a shared device. Wells Fargo chief steps down amid sales scandal. Latest news, headlines, analysis, photos and videos on Wells Fargo A Wells Fargo office is shown, Wednesday, Jan. 13, 2021 in New York. Still, he acknowledged job cuts are coming. Wells Fargo & Co. reported fourth-quarter earnings that were mixed, as the company continues to be hampered by the coronavirus pandemic, as well as ongoing issues at the bank. Wells Fargo & Co. says its profit rose 4% to $2.99 billion in the fourth quarter of 2020. Wells Fargo Advisors is a trade name used by Wells Fargo Clearing Services, LLC (WFCS) and Wells Fargo Advisors Financial Network, LLC, Members SIPC, separate registered broker-dealers and non-bank affiliates of Wells Fargo & Company. Scharf acknowledged these "constraints" have limited the bank's ability to offset the pain of low rates. Wells Fargo declined to comment. It's striking that nearly four years after Wells Fargo's scandals erupted, it's still trying to resolve disputes with customers. October 15, 2020 / 5:53 AM / CBS News Wells Fargo says it's fired workers who bilked a federal coronavirus relief program. Wells Fargo’s cost-cutting efforts will include layoffs, most likely by the end of the year, Chief Financial Officer John Shrewsberry told investors at a Morgan Stanley conference on Wednesday. Wells Fargo has provided this link for your convenience, but does not endorse and is not responsible for the content, links, privacy policy, or security policy of this website. Wells Fargo has provided this link for your convenience, but does not endorse and is not responsible for the content, … Wells Fargo has focused on these issues by revamping its corporate risk operation, including by hiring external executives. Wells Fargo (WFC) is the only major lender during the pandemic to lose money -- its first loss since the 2008 financial crisis. Wells Fargo News published on 10/15/2020 Wells Fargo News. But Wells Fargo can't because of the asset cap. More than 27,000 people in the Charlotte area work for Wells Fargo. Right now, that spread is very narrow, making it challenging to make money. All content of the Dow Jones branded indices Copyright S&P Dow Jones Indices LLC 2018 and/or its affiliates. You are leaving newsroom.wf.com and entering a website that Wells Fargo does not control. Chicago-based GTCR and New York-based Reverence did not respond to requests for comment. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. New York (CNN Business) Wells Fargo was hit with a $3 billion fine Friday by federal authorities outraged by the millions of fake accounts created at the troubled bank over many years. You are leaving the Wells Fargo Newsroom website. That means Wells Fargo's financial problems will ultimately punish employees. Wells Fargo’s asset management arm, which managed $578 billion on behalf of customers as of the end of June, could fetch more than $3 billion in a sale, two of the sources said Thursday. "The near-term fundamental outlook remains more challenged" for Wells Fargo than its peers, Kleinhanzl wrote. Some fear Wells Fargo's earnings have eroded so sharply that it will need to take further action. Without question, Wells Fargo in a year will be a much skinnier, slimmed-down version of what it is today. All times are ET. You are leaving the Wells Fargo Newsroom website. Get breaking news stories and in-depth coverage with videos and photos. But … Wells Fargo expects to slash its dividend by 80% -- far more than analysts had anticipated. Former Wells Fargo Chief Executive John Stumpf testifies on Capitol Hill on Sept. 29, 2016, about the bank’s opening of unauthorized customer accounts. 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