Wells Fargo's Scandals Finally Hurt Its Bottom Line (cnn.com)

An anonymous reader quotes CNN: Wells Fargo said operating losses surged 77% last quarter because of various problems in its auto lending, wealth management, mortgage and currency businesses. Overall expenses rose by 3%. Meanwhile, Wells Fargo said profit declined by 12% during the second quarter, missing Wall Street's expectations. The bank's stock, which has lagged behind the rest of the market, dropped 3% on Friday... Wells Fargo was also hurt by a $481 million income tax bill linked to a recent Supreme Court ruling that allows states to force online retailers to collect sales taxes...

Even though the economy is strong, several crucial metrics at Wells Fargo are shrinking. For instance, average deposits dropped by 2% to $1.3 trillion, led by a drop-off in business from financial institutions. Wells Fargo blamed the decline on actions it had to take due to penalties imposed by the Federal Reserve that prohibit the bank from growing its balance sheet. Lending, the primary way that banks make money, also dipped by 1% from the first quarter at Wells Fargo. It cited declines for commercial real estate and consumer loans, including auto lending. Mortgage banking profits also declined sharply.
If average deposits dropped by 2% to $1.3 trillion -- that looks like a drop of over $26 billion.

CNN reports that an analyst at CFRA Research has downgraded his rating on Wells Fargo -- to "sell."

Comments

skip banks; go credit unions

[WindBourne]

Seriously, many of the American banks, esp. BOA, are controlled by Chinese banks, which are then funneling the money back to China.
With credit unions, they invest into local businesses.

And CUs are not only not raping people over profits, but are fully separate from FDIC, so they can NOT afford to lose money the way that banks do.

Re:skip banks; go credit unions

[The Good Reverend]

I don't really understand why anyone still uses big banks instead of credit unions for their everyday banking needs. Better customer service, FAR fewer fees, almost all the same options.

Re:skip banks; go credit unions

[Anonymous Coward]

Like BECU and First Tech. I have accounts with both, and the past five or so years they've just become terrible. They're taking away services, like bill pay directly to an account, if you don't have a credit card with them. Ten years ago with Bank of America I setup bill pay directly to my landlord that had an account with BoA. Now, that is no longer allowed since you must have a credit card with a CCV number to set that up. BoA's SafePass is just terrible. I can't even pay my Seattle City Light bill without having a credit card even thought I was able to use bill pay for over a decade before that new requirement blocked me from paying my power bill.

Re:It's all about that business model

[Anonymous Coward]

Jews don't charge usury, as the Torah forbids it. Neither do Muslims. WF is not even Jewish. Typcial anti-Semitic behaviour.

Re:It's all about that business model

[KixWooder]

Wells is for Henry Wells and Fargo is for William Fargo.

Go bankrupt you rats

[KlomDark]

Fuck that company, go die. Currently trying to get rid of a lien on my house from WF. I have NEVER had a loan from WF. Yet there's a lien for non-payment of some bullshit loan. And when I call them to ask about it, they say I cannot discuss it with them because my phone number is not the one they have on file. Well of course it's not, you fuckers, it was never my loan. My lawyer is spinning in circles trying to get rid of this damn thing.

Fuck you Wells Fargo. Go bankrupt already, you fucking scammers.