|Bid||24.95 x 2900|
|Ask||24.98 x 1000|
|Day's range||24.90 - 24.97|
|52-week range||17.46 - 25.80|
|Beta (5Y monthly)||1.15|
|PE ratio (TTM)||8.64|
|Forward dividend & yield||1.28 (5.14%)|
|Ex-dividend date||28 May 2020|
|1y target est||N/A|
The biggest of the big four U.S. banks in terms of employee count might soon lose its leading position. According to a report from Bloomberg Law, Wells Fargo (NYSE: WFC) is gearing up to cut "thousands" of jobs starting in the next few months. Citing "people with knowledge" of such discussions within the company, the article said that the cuts could total tens of thousands of workers.
(Bloomberg Opinion) -- What was a turbulent enough week for TikTok turned downright bizarre on Friday.Already, Secretary of State Mike Pompeo had warned that the Trump administration was looking at banning the short-video platform owned by Beijing-based parent ByteDance Ltd. over data-privacy concerns, and President Donald Trump himself said he was considering banning TikTok as one way to retaliate against China over the coronavirus. Then things got worse when Amazon.com Inc. on Friday sent an email to employees telling them to delete the TikTok app from mobile devices they use to access company email, citing “security risks.”The bizarre part happened just hours after that, when Amazon issued a statement saying the it had sent the email to its employees “in error” and there was no change in their policies toward TikTok. All clear? Not quite. For soon after Amazon corrected the record on its TikTok policy, Wells Fargo & Co. confirmed a report from the Information that the bank had told employees to delete the app from work phones because of “concerns about TikTok’s privacy and security controls and practices.”For sure, the company dodged a bullet when it comes to Amazon. But it is unknown whether the e-commerce giant intends to resend a similar email on TikTok policy in the future; clearly, someone drafted something. And the government threats remain. Not only that: The prospect of a potential ban has brought widespread anxiety to the TikTok community. In recent days, many creators posted tearful “goodbye” videos, with some asking their viewers to follow their accounts on other platforms such as YouTube and Instagram. What has been a slow boil of troublesome developments risks cascading into a full-blown public relations crisis. Whether or not the security concerns are justified or the motivations political, TikTok can and should do a lot more to address them and take more control of the narrative. TikTok’s responses, thus far, have been low-key. The company has said it keeps its user data in the U.S. with backups in Singapore and has never provided data to the Chinese government. On Friday, in response to the initial Amazon news, it said in a statement that “user security is of the utmost importance” to TikTok, adding it hadn’t heard from Amazon about its concerns and looks forward to a “dialogue so we can address any issues” the tech giant may have. A more proactive response is in order, and here are some things TikTok can do. First, statements aren’t enough. Where is TikTok’s CEO? Earlier this year, ByteDance hired former Walt Disney Co. executive Kevin Mayer to head up TikTok. You’d think the veteran media executive would be the perfect ambassador to help tamp down concerns. He needs to get out there and explain TikTok’s side of the story, whether in interviews to print press or on TV. He should know the basics of crisis management and PR strategy, following his long tenure in the upper ranks of a U.S. entertainment giant.Second, the Wall Street Journal on Thursday said ByteDance was considering making changes to its corporate structure, including the creation of a new management board for TikTok or designating a new headquarters for the company outside of China. While it won’t make a huge difference as TikTok will be still owned by the China-based ByteDance, both are easy, low-hanging-fruit-type moves that would at least give the appearance of more autonomy. They should go ahead and announce the changes as soon as possible. It also wouldn’t hurt to remind the public of TikTok’s growing U.S. workforce.And finally, TikTok needs to forcefully defend itself against the Trump administration’s conjecture and allegations. Yes, it’s a bit of a tricky situation as any pushback can backfire if not done tactfully, but the company can’t afford not to respond. Further, it should hire an external, independent consulting firm to do a full security audit. Anything to assuage the security and privacy concerns would help as the pressure isn’t going away. Late Friday, Fox Business’s Charlie Gasparino reported the White House is looking at using the Committee on Foreign Investment review as possible way to ban TikTok by saying its prior acquisition of Musical.ly was illegal. ByteDance has been under review by the interagency committee in the U.S. for its 2017 purchase of the lip-synching startup.In many ways, TikTok’s situation is similar to the public relations frenzy over Zoom Video Communications Inc. in early April. At the time, the video-conferencing company — whose service had seen an unprecedented surge from business customers and other entities looking to connect under lockdown — faced an avalanche of scrutiny over its security and privacy practices, including its use of Chinese servers. In response, CEO Eric Yuan proactively made himself available for numerous media interviews and helped restore his company’s reputation. He conducted weekly webinars, hired security experts and did whatever it took to educate the public that fears concerning his company’s products were overblown and that Zoom had taken concrete steps to address the issues. The strategy appears to have worked, as Zoom has managed to both retain customers and attract more to its platform.TikTok should take note and do the same. Hunkering down and doing the bare minimum is not a great strategy.(The third paragraph of this column was updated to include information about Wells Fargo’s ban of the TikTok app on its employees’ work phones.)This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Tae Kim is a Bloomberg Opinion columnist covering technology. He previously covered technology for Barron's, following an earlier career as an equity analyst.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
The beleaguered banking giant has had a tough time lately. Here's what it needs to catch a break.
(Bloomberg) -- Wells Fargo & Co. said it asked employees to remove TikTok from their work phones due to concerns about the security of the social-video app.“We have identified a small number of Wells Fargo employees with corporate-owned devices who had installed the TikTok application on their device,” a spokesman for the bank wrote in an emailed statement on Friday. “Due to concerns about TikTok’s privacy and security controls and practices, and because corporate-owned devices should be used for company business only, we have directed those employees to remove the app from their devices.”U.S. officials have raised questions about the security of TikTok, which is owned by Chinese company ByteDance Ltd. Secretary of State Mike Pompeo recently told Americans not to download the app unless they want to see their private information fall into “the hands of the Chinese Communist Party.”Read more: Trump Says He’s Considering a Ban on TikTok in the U.S.TikTok has repeatedly denied allegations that it poses a threat to U.S. national security. “User security is of the utmost importance to TikTok – we are fully committed to respecting the privacy of our users,” a TikTok spokesperson wrote in an email.Earlier on Friday, Amazon.com Inc. also told employees to delete TikTok from mobile devices they use to access company email, but the e-commerce giant later said that was a mistake. The Information reported Well Fargo’s decision earlier.Read more: TikTok Mulls Changes to Business to Distance Itself From ChinaFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
With an aim of improving profitability and operating efficiency, Wells Fargo (WFC) is likely to cut jobs starting later this year.
Amid the coronavirus-induced economic crisis, lower interest rates are expected to have negatively impacted Wells Fargo's (WFC) interest income in the second quarter of 2020.
The bank announced it would cut its cash payout following the Fed's decision to cap dividends. Now the question is: By how much?
Wells Fargo & Company (NYSE: WFC) announced today that Kristy Fercho will join the company at the beginning of August as the new head of Wells Fargo Home Lending. Fercho has 18 years of leadership experience in the mortgage industry and will replace Michael DeVito, who has announced plans to retire later this summer after more than 23 years with Wells Fargo.
Jul.09 -- Wells Fargo & Co., the largest employer among U.S. banks, is preparing to cut thousands of jobs starting later this year. Bloomberg's Hannah Levitt broke the story and she appeared on "Bloomberg Markets."
According to data from S&P Global Market Intelligence, the stock fell 52% over the first half of the year. Adjusted earnings per share of $0.93, which excluded $0.33 per share in litigation charges related to the retail banking scandal, were down from $1.21 in the quarter a year ago, and missed estimates of $1.12. Lower interest rates also weighed on net interest income, which fell from $12.6 billion to $11.2 billion.
Following an April 2020 industry-leading commitment to donate all gross processing fees from the Paycheck Protection Program, Wells Fargo unveiled today the details of an approximately $400 million effort to help small businesses impacted by the ongoing COVID-19 pandemic keep their doors open, retain employees, and rebuild. Through Wells Fargo’s new Open for Business Fund, the company will engage nonprofit organizations to provide capital, technical support, and long-term resiliency programs to small businesses with an emphasis on those that are minority-owned businesses.
Wells Fargo (WFC) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
Investing in growth-oriented stocks at the right time makes Wells Fargo (WFC) unattractive for investors, right now.
Wells Fargo & Company (NYSE: WFC), as previously announced, will report its second quarter 2020 earnings results on Tuesday, July 14, 2020, at approximately 5 a.m. PT (8 a.m. ET). The results will be available online at https://www.wellsfargo.com/about/investor-relations/quarterly-earnings/.
(Bloomberg) -- Wells Fargo & Co. is pulling back from student lending as the U.S. surge in coronavirus cases threatens to further disrupt higher education and the broader U.S. economy.The firm, which has been reviewing businesses under new Chief Executive Officer Charlie Scharf, said student loans for the upcoming academic year will be granted only to people who submitted applications before July 1 or to customers who already have an outstanding balance on a prior student loan from the bank.“Wells Fargo has decided to narrow its student-lending focus,” Manuel Venegas, a spokesperson for the bank, said in a statement.The pandemic is disrupting academic programs and undermining the ability of many borrowers to repay as it halts commerce and costs tens of millions of Americans their jobs. Already, more than 40 million student-loan accounts were in deferment as of mid-June, according to Equifax.San Francisco-based Wells Fargo had a $10.6 billion private student-loan book at the end of the first quarter -- a portfolio that’s been shrinking in recent years. Private makes up about $130 billion of the $1.7 trillion student-debt pie, according to data provider MeasureOne.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
The Wells Fargo Utilities and High Income Fund (NYSE American: ERH) released information about the sources of today’s distribution in a Notice provided to shareholders. The full text of the Notice is available below and on the Wells Fargo Asset Management website.
The Federal Reserve recently released the results of 2020 bank stress tests, and while no banks are in serious danger, some would see capital levels fall a bit too low for comfort in a prolonged and deep COVID-19 recession. As a result, the Fed issued a formula to govern bank dividends, and there's a real chance bank investors could see dividend cuts from some major financial institutions. In this episode of Industry Focus: Financials, host Jason Moser and Fool.com contributor Matt Frankel, CFP, discuss the news and what it could mean for bank investors.
Stocks rallied into the close Tuesday to cap off the best second quarter for blue-chip equities since the S&P 500 was created in 1957.
Former CFPB head Richard Cordray says Monday's Supreme Court ruling would mean quick removal of the agency's Trump-appointed director if the Democrats win the White House.
Attorney Advertising--Bronstein, Gewirtz & Grossman, LLC reminds investors that a class action lawsuit has been filed against Wells Fargo & Company ("Wells Fargo" or "the Company") (NYSE: WFC) on behalf of shareholders who purchased Wells Fargo securities between April 5, 2020, and May 5, 2020, inclusive (the ''Class Period''). Such investors are encouraged to join this case by visiting the firm’s site: www.bgandg.com/wfc.
Federal Reserve's move to cap dividend based on average of income in the past few quarters is likely to make Wells Fargo (WFC) lower its dividend level.
Last week, the Federal Reserve announced that it would be restricting dividend payments for big banks after conducting the 2020 version of its stress test. Not only will banks not be allowed to increase their dividends for the time being, but the payment of any dividend is dependent on a four-quarter average of each bank's net income. Many of the big bank stocks have already announced plans to keep their dividends at current levels in the third quarter -- including Bank of America (NYSE: BAC), JPMorgan Chase (NYSE: JPM), and Citigroup (NYSE: C).
(Bloomberg) -- Wells Fargo & Co. plans to cut its dividend, breaking with all of the biggest Wall Street banks, after the Federal Reserve last week set new restrictions on the payouts.“There remains great uncertainty in the path of the economic recovery and though it’s difficult to accurately predict the ultimate impact on our credit portfolio, our economic assumptions have changed significantly since last quarter,” Chief Executive Officer Charlie Scharf said Monday in a statement.JPMorgan Chase & Co., Bank of America Corp., Citigroup Inc., Goldman Sachs Group Inc. and Morgan Stanley left their third-quarter payouts unchanged, according to statements from those banks.A reduction by Wells Fargo was widely expected after the Fed said it would restrict payouts using a formula based on earnings, which have plunged at the San Francisco-based bank in recent quarters partly on legal costs tied to multiple scandals. The bank has spent almost four years struggling to emerge from the missteps, which began with the 2016 revelation that employees opened millions of potentially fake accounts to meet sales targets.Wells Fargo said it would announce on July 14 how far the current 51-cent payout would drop. It’s expected to decline to 20 cents, according to an analysis by Bloomberg’s Dividend Forecast team.Shares of Wells Fargo fell almost 1% to $25.45 in extended trading in New York at 5:29 p.m. They’re down 52% this year.In releasing the results of its annual stress test on the industry last week, the Fed capped dividends at the largest 33 banks at current levels. The central bank said it might conduct another exam using a harsher economic scenario later this year, limiting firms’ ability to gauge prospects for dividends for the rest of the year.Coronavirus ImpactThe Fed added a new “sensitivity analysis” to its review that sought to capture how well firms are prepared to handle financial pressure caused by the Covid-19 pandemic. Those results were released only in aggregate form, showing how all the banks being tested would fare under more severe scenarios.Policy makers considered three potential scenarios: a quick V-shaped recovery, a slower U-shaped bounce-back and a worst-case W-shaped scenario, which assumes a second wave of coronavirus containment measures. In that review, industry capital levels are expected to slump 4.3 percentage points.The Fed has also told companies they can’t resume buybacks, which were suspended in March to preserve capital as the pandemic was spreading. While the industry fared well in the central bank’s annual review, the new limits were meant to restrict the distribution of capital at a time when the economic recovery looks uncertain.Goldman Sachs was among the worst hit in the stress test’s hypothetical economic scenario, leading some analysts to predict it might have to shrink its balance sheet in the third quarter to continue paying dividends at the current level.The firm said on Monday it was confident it could bring its capital level up to the central bank’s new requirement. Goldman Sachs said it has already brought its common equity tier 1 ratio to 13% in the second quarter, up from 12.3% in the previous three months. Under the new stress capital buffer set by the Fed, it has to be 13.7% by the end of the third quarter.Capital One Financial Corp., another lender that some analysts predicted would lower its dividend, didn’t mention the payout in a statement Monday on the stress tests. Credit Suisse Group AG analyst Moshe Orenbuch said that probably meant the firm could continue paying at the current level.(Updates with shares in sixth paragraph, Goldman comment starting in 11th paragraph.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Wells Fargo & Company (NYSE: WFC) today commented on the results of the Federal Reserve Board’s (FRB) Dodd-Frank Act stress test and related Comprehensive Capital Analysis and Review (CCAR), including the FRB’s instructions regarding capital distributions through the end of third quarter 2020.