As somebody who is personally invested in Wells Fargo & Company, I like to keep tabs on current news involving the corporation.
Latest headlines include:
Global Finance names Wells Fargo Insurance, North America’s Best Insurance Broker
Wells Fargo to cut 2,300 jobs from its mortgage-production unit as demand for refinancing slows
An article that sparked a particular interest for me was Bloomberg’s piece stating that Wells Fargo is to pay $869 million dollars to Freddie Mac.
Freddie Mac is a public government-sponsored enterprise in the financial services industry that claimed supposed fraud for home loans sold by Wells Fargo.
Wells Fargo stated, “the agreement will allow it to substantially resolve liabilities on home loans it solde to Freddie Mac before 2009 and the emergence of the financial crisis”.
Wells Fargo, is not the only bank facing these issues as many corporations face claims that date back to the housing boom.
Will it affect the stocks? Probably not. Wells Fargo is an incredibly big, and successful bank which was most likely already funded to make such an expensive settlement. However, most investors won’t be too happy to hear about it.
Currently trading at $43.54, I’d say that Wells Fargo is on a positive stretch.
Fingers crossed it will stay that way.
Sources:
http://www.bloomberg.com/news/2013-08-21/wells-fargo-said-to-eliminate-2-300-mortgage-jobs.html
https://www.wellsfargo.com/press/2013/20131112_bestinsurancebrokerinnorthamerica
https://www.wellsfargo.com/press/2013/20131115_fourthqearnings