WFC-PY - Wells Fargo & Company

NYSE - NYSE Delayed price. Currency in USD
24.29
-0.34 (-1.38%)
At close: 4:02PM EDT

24.29 0.00 (0.00%)
After hours: 4:17PM EDT

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Previous close24.63
Open24.15
Bid17.99 x 1100
Ask24.23 x 1200
Day's range24.09 - 24.38
52-week range17.28 - 27.15
Volume295,176
Avg. volume92,381
Market cap198.337B
Beta (5Y monthly)1.15
PE ratio (TTM)6.00
EPS (TTM)4.05
Earnings dateN/A
Forward dividend & yield1.41 (5.82%)
Ex-dividend date26 Feb 2020
1y target estN/A
  • Business Wire

    Wells Fargo Utilities and High Income Fund Announces Sources of Distribution

    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.

  • Bloomberg

    Hospitals Burn Through Cash While Congress Weighs Next Stimulus

    (Bloomberg) -- U.S. hospitals are burning through cash so quickly on the front lines of the nation’s fight against the coronavirus pandemic that the more than $100 billion they’re set to get from the federal emergency stimulus package might not be enough.The $2.2 trillion package lets hospitals get an advance on expected Medicare reimbursements and helps make up for lost revenue from suspended, profitable elective surgeries. The rescue funds are intended to help hospitals keep the lights on, and to expand services and buy protective equipment as they race to care for COVID-19 patients.While the federal funds will help prop up hospitals in the immediate future, financial analysts are warning that more money will be needed to stem a drain on reserves or losses. Moody’s Investors Service has already said the outbreak likely will hurt cash flow this year, even after the recent stimulus package. S&P Global Ratings cut its outlook for the not-for-profit acute health care sector to negative.“There’s intense stress on the balance sheet -- across the board,” Wells Fargo Securities senior analyst George Huang said in a telephone interview. “Hospitals are burning through cash very quickly. The longer it goes on, the increased likelihood hospitals will need more cash infusion. I think there’s likely a need for further aid down the road.”Fourth RoundThe White House and Congress have begun circling the idea of a fourth round of stimulus to combat the economic fallout from the coronavirus outbreak. Both President Donald Trump and House Speaker Nancy Pelosi have begun floating ideas for such a measure, just days after he signed the $2.2 trillion bill.Illinois Senator Dick Durbin, a Democrat, said he’s spoken with hospitals executives and told reporters on March 26 that some operators are “hanging on by a thread.”“Our hospitals are facing a moment of challenge and testing the likes of which they have never seen,” Durbin said.NewYork-Presbyterian Hospital, located in the epicenter of the outbreak in the U.S., told bond investors that it expects operating losses between $104 million and $454 million in 2020, according to a regulatory filing. The hospital had budgeted for income of $246 million this year before the outbreak hit. Yale New Haven Health said in a filing that it needs to draw $100 million from its credit agreement with Wells Fargo & Co. to boost its cash on hand.Nationwide CrisisMany non-profit and public hospitals tap the $3.9 trillion municipal bond market, which has been whipsawed over the last month as investors pulled record amounts out. The pandemic may compound existing financial strains in certain parts of the health care sector and municipal-bond investors may become “much more skeptical,” said Paul Ferdinands, a restructuring lawyer at King & Spalding.High-yield hospital bonds have lost 6.4% this year, according to Bloomberg Barclays indexes.“Of all the sectors in the municipal market, the health-care sector has the most long-term volatility because of the pandemic,” said Matt Fabian, an analyst at Municipal Market Analytics. “The federal government is pouring support into the health care sector and will likely continue to do so.”Related: Hospitals Get Help to Make Room for Covid-19 Patient SurgesFor 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.

  • Business Wire

    Wells Fargo Innovation Incubator Announces Partner Awards to Support Network of Cleantech Startup Champions

    Wells Fargo Innovation Incubator Announces Partner Awards to Support Network of Cleantech Startup Champions.

  • Wells Fargo Has $384 Billion of Lending Power Stymied by Fed Cap
    Bloomberg

    Wells Fargo Has $384 Billion of Lending Power Stymied by Fed Cap

    (Bloomberg) -- Wells Fargo & Co. is a leading lender to small and midsize U.S. companies, home buyers and commercial property investors, and has capacity to unleash about $384 billion of additional loans to customers trying to weather the coronavirus pandemic.But the bank can’t -- because it’s in the regulatory doghouse.The Federal Reserve remains reluctant to ease or lift its 2018 order capping the San Francisco-based lender’s assets because the company has yet to fully address concerns that prompted the unprecedented sanction, according to people with knowledge of the situation. The cap effectively prevents the bank from deploying a mountain of pent-up capital that could back a surge of lending.As the coronavirus pandemic began upending the economy in recent weeks, it quickly emerged that Wells Fargo’s representatives had privately broached the idea of at least temporarily lifting the restriction so it could help more customers. The Fed has yet to publicly disclose its decision.Behind the scenes, Fed officials are skeptical the bank is ready, the people said. Wells Fargo’s new leaders have been making progress but have yet to prove they have made adequate reforms to prevent the consumer abuses that fueled scandals in recent years. And they have confidentially warned the Fed they will miss an April deadline to submit a required plan for improvements.“While we cannot comment on regulatory matters, Wells Fargo is focused on satisfying the requirements of the consent order,” the company said in a statement. “During these challenging times, we are very focused on doing all we can for our clients while operating under the constraints of the asset cap.”Most FirepowerThe Fed’s consent order from February 2018 caps Wells Fargo’s assets at their 2017 level. At the end of last year, the bank was just $24 billion short of that level -- all the room it had to grow unless the ban is rescinded. With credit lines being drawn by companies and deposits flowing in, it may already have gotten there.Wells Fargo executives have made internal adjustments over the years to ensure they can meet customers’ needs. The bank should be able to keep meeting demands from existing clients, but it might be constrained in ramping up lending significantly as new ones seek help, one of the people said.The appeal puts the Fed in a difficult spot -- conflicted between its role as a tough regulator of financial giants and its current efforts as a central bank trying to ensure ample cash for the struggling economy. The Fed has encouraged the biggest lenders to use their excess capital and dip into additional buffers to expand lending during the pandemic.Bloomberg calculated Wells Fargo’s capacity for additional lending based on its capital at the end of 2019. Together, the nation’s eight banking titans had enough then to ramp up lending by $1.6 trillion. But ironically, the firm with the most firepower among them can’t proceed.It would be tricky to lift the ban temporarily, because it would entail setting a time line for undoing any growth. It’s one thing to prevent a balance sheet from expanding, quite another to shrink it significantly after making hundreds of billions of dollars in ongoing loans.Chief Executive Officer Charlie Scharf took over in October after two previous CEOs frustrated regulators and politicians who accused the bank of failing to act quickly enough to fix problems. Unlike his predecessors, both longtime Wells Fargo veterans, Scharf is an outsider, and he’s been developing plans to more radically overhaul the company. At a congressional hearing this year, he acknowledged there’s much left to do.The bank’s representatives didn’t try pressing a case to the Fed that Scharf’s work on reforms is done, the people said. Rather, they noted the scope of the emergency facing the country and the bank’s willingness to help. Without the cap, Wells Fargo would be able to arrange significantly more financing for consumers, local businesses, large corporations and municipalities.Wells Fargo has been in Washington’s crosshairs since a variety of scandals emerged following the 2016 revelation that employees had opened millions of potentially fake accounts to meet sales goals. Lawmakers on both sides of the aisle have expressed deep frustration with the bank, with some signaling the Fed would face a backlash if it’s lifted. But there’s a chance that the virus’s impact on the economy might shift the political landscape.On Saturday, Maxine Waters, who chairs the House Financial Services Committee, asked Fed Chair Jerome Powell for information on Wells Fargo’s request and what the regulator makes of it. She wants his staff to provide a briefing to the committee in coming days on its supervision of the bank.Desperate CompaniesCompanies eager for cash have drawn down credit lines and arranged new facilities, obtaining at least $177 billion in financing since March 9, when Bloomberg News began tracking the data. Behind the scenes, bankers have sought to persuade corporate clients that they don’t need to tap cash preemptively -- often for reasons that have less to do with liquidity than profitability. That suggests that even if Wells Fargo’s cap were lifted, it may not rush to deploy all of the money.While lending boosts the asset side of banks’ balance sheets, investors fleeing capital markets have generated a flood of deposits, increasing the liability side. By March 18, the 25 largest commercial banks had collectively gained $420 billion of deposits this year, according to Fed data.Wells Fargo had 9.6% of the market share for U.S. deposits in 2019, according to Federal Deposit Insurance Corp. data. If it maintained that share, the influx would amount to about $40 billion, potentially pushing the bank above its 2017 asset cap.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.

  • Business Wire

    Wells Fargo Closed-End Funds Declare Monthly Distributions

    The Wells Fargo Income Opportunities Fund (NYSE American: EAD), the Wells Fargo Multi-Sector Income Fund (NYSE American: ERC), and the Wells Fargo Utilities and High Income Fund (NYSE American: ERH) have each announced a distribution.

  • Coronavirus crisis: How to deal with potentially contaminated money
    Yahoo Finance

    Coronavirus crisis: How to deal with potentially contaminated money

    Can you wash money that you think has been contaminated with coronavirus? Should you? How can you deposit or withdraw money right now?

  • Your Evening Briefing
    Bloomberg

    Your Evening Briefing

    (Bloomberg) -- The U.S. presidential campaign has understandably taken a backseat to the global pandemic this month, but the two converged on Wednesday. After some Republican senators threatened to block an unprecedented, bipartisan, $2 trillion rescue package because it gives too much money to the unemployed, Democratic candidate Bernie Sanders grabbed the mic. The Vermont senator warned he would be the one to derail the deal if the Republicans, including Senator Lindsey Graham of South Carolina, were mollified. Sanders also said he wants the legislation to include tougher oversight on aid for corporations and to require them to pay higher wages and stop offshoring jobs.Bloomberg is mapping the spread of the coronavirus globally and in the U.S. For the latest news on the outbreak, sign up for our daily newsletter.Here are today’s top storiesMore than 20,000 people have died so far, double the number just five days ago. In America, President Donald Trump has reiterated his desire to lift restrictions much sooner than experts consider advisable, claiming the cure of shutdowns might be worse than the disease.Authoritarian tactics being used by some nations to stamp out Covid-19 could be seen in a similar light. Unprecedented in peacetime and fueled by new technology, these new powers, not unlike those retained in the aftermath of the 9-11 attacks, may linger after the crisis has passed.Like Trump, some Wall Street titans want Americans back on the job. Dick Kovacevich, ex-chairman of Wells Fargo, said healthy, younger workers should return in late April ( if the outbreak is under control) to avoid a deeper economic calamity. “We’ll gradually bring those people back and see what happens,” Kovacevich said. “ Some of them will get sick, some may even die, I don’t know.” Ninety-five percent of the more than 200 New York City residents who have died from Covid-19 had underlying health conditions. The pattern mirrors hard-hit places like Italy.U.S. jobless claims last week saw the biggest spike since the aftermath of Superstorm Sandy eight years ago, jumping 33% to 281,000. New figures due Thursday could be as high as 3 million.The Fed’s planned leap into the corporate-bond market has exchange-traded fund investors rushing in with billions of dollars. But distressed debt in the U.S. has quadrupled in less than a week to almost $1 trillion, a level not seen since the Great Recession.The pandemic may soon affect your local forecast. With many commercial flights grounded, meteorologists who rely on data collected from planes are going without just as spring flood waters rise across North American and Europe.What you’ll need to know tomorrowBusinessweek: 3M is doubling production of N95 face masks. While hospitals beg for more, a Texas auction had 750,000 of them. Malaria drug touted by Trump no better than regular Covid-19 care. These countries are beginning to hoard food. The pandemic threatens billions of dollars in credit card losses. Gallup poll shows 60% approval of Trump’s handling of the crisis. Neighborhood restaurants are turning into liquor stores.What you’ll want to read in Bloomberg Pursuits ‘Smart bike’ sales are booming (for now): Peloton and other home “smart bike” makers are experiencing a sharp increase in sales as a result of the Covid-19 pandemic. The machines, which allow riders to stream live spinning classes or compete with other users in immersive digital environments, are in sudden demand now that much of America can’t get to the gym. But the bump may not last.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.

  • N.J. Surge on Track to Echo N.Y.; Italy Cases Slow: Virus Update
    Bloomberg

    N.J. Surge on Track to Echo N.Y.; Italy Cases Slow: Virus Update

    (Bloomberg) -- Governor Andrew Cuomo of New York said the stimulus package working its way through Congress is inadequate. He also restricted access to a malaria drug that President Donald Trump has touted as a treatment for the novel coronavirus.Spain had its deadliest day yet. In Britain, the government moved to shut Parliament and Prince Charles tested positive. European Union leaders inched toward a rescue package. Germany unleashed a historic bailout.Russian President Vladimir Putin postponed a public vote on constitutional changes next month that would allow him to rule to 2036. In Brazil, President Jair Bolsonaro, echoing Trump, urged the country to resume normal life to protect the economy.Key Developments:Cases top 458,000; 20,807 dead, 113,687 recovered: Johns HopkinsTrump will stop using the term ‘Chinese virus,’ easing blame gameTokyo asks people to stay inside as new cases spur lockdown riskIndia locked down, U.K. shuts Parliament; Iran, Singapore tighten curbsFired Americans send state unemployment websites crashingWorld leaders get sweeping powers they may never give upThe humming of Chinese plants returns as rest of world reelsSubscribe to a daily update on the virus from Bloomberg’s Prognosis team here.Click VRUS on the terminal for news and data on the coronavirus and here for maps and charts. For analysis of the impact from Bloomberg Economics, click here. To see the impact on oil and commodities demand, click here.California in Deal With Banks for Mortgage Relief (4:50 p.m. NY)Wells Fargo & Co., US Bancorp, Citigroup Inc. and JPMorgan Chase & Co. have agreed to a 90-waiver of residential mortgage payments for Californians affected by the virus, Governor Gavin Newsom said. He also is considering a state-wide moratorium on evictions, a move some cities and counties have already made.“We’d reserve the right to look at a state overlay,” Newsom said at a briefing. “We have a team reviewing the legal parameters of that issue.”There have been 2,535 confirmed cases in the most populous U.S. state, a 17% increase from Tuesday, Newsom said. He praised the stimulus bill being considered by Congress and said more help will be needed, noting that one million Californians have filed for unemployment insurance since March 13.N.J.’s Virus Numbers on Track to Echo N.Y.’s (4:20 p.m. NY)Northern New Jersey is on track for the kind of viral surge that New York is experiencing, the state’s health commissioner said on Wednesday.Judy Persichilli said the trends in her state were tracking those of neighboring New York, which projects a peak infection rate in 14 to 21 days.“When we see this peak in New York, I think we can expect Bergen, Essex and Hudson counties will follow the trends,” she said at a news conference in Trenton on New Jersey’s response to the pandemic.Read full story hereU.K.’s Johnson Threatens Action to Stop Profiteering (4 p.m. NY)U.K. Prime Minister Boris Johnson said he’s considering making profiteering illegal as Britain battles the coronavirus, following reports that some firms had been hiking prices on essential products.“We are looking very carefully at what’s going on,” Johnson said at a press conference Wednesday. “I do not want to see people exploiting peoples’ need at a critical time, a national emergency.”WHO: Countries Wasted Time Amid Spread (2:52 p.m. NY)The world squandered a window of opportunity to fight the coronavirus and many actions should have been taken one or two months ago, according to World Health Organization Director-General Tedros Adhanom Ghebreyesus.Worldwide lockdowns have created a second window of opportunity that shouldn’t be wasted, he said at a press briefing in Geneva. There are 150 countries with fewer than 100 reported cases, he said, adding that those in lockdown should use this time to contain the virus.“The last thing any country needs is to reopen schools and businesses only to close them again because of resurgent cases,” he said.New Cases Decline in Italy (1:50 p.m. NY)Italy reported that new coronavirus cases fell on Wednesday, after nearly three weeks of lockdown measures. There were 5,210 new cases, compared with 5,249 a day earlier.Fatalities from the disease over the past 24 hours totaled 683, compared with 743 on Tuesday, according to figures from the civil protection agency. Confirmed cases in the country now total 74,386.The news came as the government broadened rules that shield companies from hostile takeovers as the virus takes a heavy toll on the economy.Cuomo: Stimulus a ‘Drop in the Bucket’ (12:54 p.m. NY)The stimulus package working through Congress is “terrible” for New York state, the epicenter of the coronavirus pandemic in the U.S., Governor Andrew Cuomo said.The $2 trillion in aid approved by the U.S. Senate includes $3.8 billion for New York state and $1.3 billion for New York City, Cuomo said, which he called a “drop in the bucket.” Lost tax revenue will cost the state as much as $15 billion, he said.Cuomo has been a chief critic of the Trump administration’s response to the coronavirus outbreak, demanding Trump invoke his national-security authority to speed production of ventilators and other medical equipment.N.Y. Restricts Access To Malaria Drugs (12:15 p.m. NY)New York Governor Andrew Cuomo joined other states in restricting access to malaria treatments that President Donald Trump has touted for the novel coronavirus despite a lack of proof they will work.Cuomo updated an executive order Monday evening to block pharmacists from filling prescriptions for the malaria drugs chloroquine and hydroxychloroquine for any uses not approved by the Food and Drug Administration unless it is for a patient who has tested positive for Covid-19 and is part of a clinical trial. The medications are not approved to treat coronavirus.The government doesn’t typically impose on the practice of medicine. Doctors are typically allowed to prescribe drugs for any illness or condition, not just those a specific medication is approved to treat. Ohio, Texas, Idaho and Nevada have also moved to limit access to the drugs.Most NYC Covid-19 Dead Had Other Health Problems (11:30 a.m. NY)Ninety-five percent of New York City’s almost 200 deaths from the new coronavirus had underlying health conditions, though almost half were under the age of 75, according to data published by the city’s health department on Tuesday.The deaths, as well as data on cases and hospitalizations, mimic the patterns found in other cities with major outbreaks. New York City had more than 15,000 Covid-19 cases as of 5 p.m. Tuesday, the largest outbreak in the U.S.Read the full story hereSigns of Slowing Spread in Netherlands (10:49 a.m. NY)New hospitalized cases of the coronavirus in the Netherlands seem to be leveling off after a recent rise, according to the RIVM National Institute for Public Health and the Environment.That may indicate a decrease in the rate at which the virus is spreading in the Netherlands, RIVM said in its daily update, adding that the next few days should show whether the curve is really flattening.The daily tally of confirmed cases rose 15% to 6,412. That compares with a rise of 17% on Tuesday.Home-Testing Kits Coming to U.K. (10:34 a.m. NY)Sharon Peacock, director of the U.K.’s National Infection Service, said 3.5 million virus home-testing kits have been ordered and will be available in days once scientists in Oxford have finished evaluating them for public use.The blood tests, which check for antibodies, will be sold via Amazon and pharmacy chains so people can test themselves, Peacock told a panel of lawmakers in Parliament. Prime Minister Boris Johnson’s government has been criticized for not carrying out enough testing during the coronavirus crisis.U.K.’s Sunak to Detail Support for Self-Employed (10:34 a.m. NY)U.K. Chancellor of the Exchequer Rishi Sunak on Thursday will announce a package of assistance for self-employed Britons. It’ll be Sunak’s fourth emergency package to help British companies and workers cope with the economic fallout from the coronavirus pandemic. Last week, he guaranteed 80% of the wages of those with jobs that are at risk because of the outbreak.Prime Minister Boris Johnson’s spokesman also said authorities will crack down on people profiteering from the coronavirus crisis.Putin Delays Vote on Plan to Stay in Power (9:50 a.m. NY)President Vladimir Putin postponed a public vote on constitutional changes next month that would allow him to rule to 2036 as Russia attempts to stem the spread of the coronavirus.Putin, who has promised Russians final say on amendments to the constitution he has rushed through, said the vote planned for April 22 would be rescheduled at a later date.Saying Russia couldn’t cut itself off from the pandemic, he said that people wouldn’t work next week, though workers would still get paid. He announced the delay during a hastily arranged national address Wednesday.Though its totals remain well below those in some big European countries, Russia reported that coronavirus cases jumped by a third over the past day to 658.Ackman Puts Part of His Fortune in Covid-19 Testing (9:04 a.m. NY)Billionaire Bill Ackman said he invested a portion of his personal wealth to help manufacture antibody testing kits produced by Covaxx, a newly formed subsidiary of closely-held United Biomedical Inc.Ackman has repeatedly called for a complete shutdown of the U.S. for 30 days to help combat the spread of the virus. He has also called for antibody testing, like the one Covaxx develops, across the country to determine who has already contracted the virus.Bullard Says 2Q Will See Most Pandemic Disruption (8:52 a.m. NY)St. Louis Fed President James Bullard told CNBC the second quarter is likely to see the most disruption from the coronavirus outbreak, but the economy should bounce back by year’s end. “If we can get this to work right, everything will snap back to normal once this is over,” he said.Bullard tempered earlier remarks predicting that the U.S. unemployment rate may hit 30% in the second quarter. “This number will be unparalleled, but don’t get discouraged.”Switzerland Expands Entry Curbs (8:47 a.m. NY)Switzerland on Wednesday stepped up the curbs on incoming travel to include all countries within the Schengen area. It previously had limited arrivals from Spain, Italy, Germany, France and Austria.The Schengen area is a passport-free travel zone among 26 European nations.Portugal Confirmed Coronavirus Cases Rise (8:35 a.m. NY)The number of confirmed coronavirus cases in Portugal increased 27% to 2,995 on Wednesday from 2,362. That compares with a daily increase of 15% reported on Tuesday and a 29% gain on Monday.The total number of deaths increased to 43 on Wednesday from 33 reported through Tuesday morning; 22 patients have now recovered, unchanged from Tuesday. Almost 80% of coronavirus-related deaths in Portugal so far are of people aged 70 or older.Schumer Expects Senate to Pass Stimulus Deal Today (8:34 a.m. NY)Senate Democratic leader Chuck Schumer calls the stimulus deal the “art of compromise” and says help is on the way for American workers, state and local governments and small businesses. He told CNN he expects the Senate to pass the bill today.One in 20 Britons has lost a job because of the outbreak and 9% experienced a reduction in hours or pay, according to YouGov. The survey was taken on the first two days of the U.K.’s official lockdown, with the government banning all unnecessary movement of people for at least three weeks and requiring the closure of non-essential businesses. There have been about 477,000 new claims for state support payments, according to the Department for Work and Pensions.EU Leaders Call for Corona Bonds (8:26 a.m. NY)Nine EU leaders, including Emmanuel Macron and Giuseppe Conte, urged the introduction of so-called coronabonds in a letter cited by AFP on Wednesday.India Delays Plans for Population Register (7:50 a.m. NY)The government has indefinitely postponed plans to begin surveys leading to its next census and a comprehensive population register. The process was to have begun in April and was seen as a precursor to a national citizens register that, along with a new citizenship law, had led to angry protests across India since December.India is likely to agree on an economic stimulus package of more than 1.5 trillion rupees (about $20 billion), Reuters reported, citing two unidentified people familiar with the plans.Italian Opposition Pushes Takeover Protection for Weakened Banks (7:50 a.m. NY)Italy must toughen the rules shielding strategic sectors from hostile takeovers because the coronavirus has left banks, insurance companies and pharmaceutical firms vulnerable to foreign predators, according to a senior opposition lawmaker.Senator Adolfo Urso, vice-president of the parliament’s security and intelligence committee, said in an interview Wednesday that he will file amendments to the government’s decree on a 25 billion-euro ($27 billion) stimulus package for the economy by Friday afternoon.Stock Rebound Fades (7:45 a.m. NY)European equities swung between gains and losses in a volatile session as optimism about a U.S. stimulus package dimmed amid renewed worries over the economic blow from the coronavirus outbreak. The Stoxx Europe 600 Index was up 0.6% after having earlier risen as much as 4.8%. U.S. stock futures declined and Treasuries gained.Amazon, Walmart Struggle to Cope as India Enters Lockdown (7:45 a.m. NY)The country’s 1.3 billion people are in a three-week lockdown, sending many to scour the web for food and daily essentials. But unlike in China, where online fresh grocery services offered a lifeline during its Covid-19 outbreak, Indian authorities are stopping food trucks on highways, and shutting down warehouses and rice mills. They’re also preventing delivery and supply-chain workers from doing their jobs.(A previous version corrected the day of Governor Cuomo’s executive order)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.

  • Implied Volatility Surging for Wells Fargo (WFC) Stock Options
    Zacks

    Implied Volatility Surging for Wells Fargo (WFC) Stock Options

    Investors need to pay close attention to Wells Fargo (WFC) stock based on the movements in the options market lately.

  • Fed Unleashes Unprecedented Measures to Shore Up Reeling Economy
    Bloomberg

    Fed Unleashes Unprecedented Measures to Shore Up Reeling Economy

    (Bloomberg) -- The Federal Reserve, racing again to contain mounting economic and financial-market fallout from the coronavirus, unveiled a sweeping series of measures that pushed the 106-year old central bank deeper into uncharted territory.In a surprise announcement Monday before markets opened in New York, the U.S. central bank said it will buy unlimited amounts of Treasury bonds and mortgage-backed securities to keep borrowing costs at rock-bottom levels -- and to help ensure chaotic markets function properly. It also set up programs to ensure credit flows to corporations as well as state and local governments.The Fed’s latest steps landed as investors wait for U.S. lawmakers to deliver a multi-trillion dollar package of coronavirus support, which failed to come together Sunday when Democrats objected that it did not do enough for average Americans.Following a string of emergency measures last week, the moves also increasingly push the central bank into new territory by providing direct support to U.S. employers, municipalities and households, which would traditionally be viewed as fiscal policy.“Wow, just wow,” George Rusnak, head of investment management at Wells Fargo Private Bank, said on Bloomberg Television. “Hopefully you’ll come out of this with some fiscal stimulus as well, and you’ll be set with good growth opportunities in the long run.”In a sign, however, of just how unnerved investors are by the pandemic, the Fed’s moves failed to spark anything beyond a brief rally in stocks and corporate bonds Monday after weeks of staggering losses.Stocks fell 4.5% in New York. Yields on 10-year U.S. Treasuries initially sank below 0.69% as investors digested the news before pushing back to around 0.74%.Some pockets of the market reacted positively to the Fed moves. Signs of stress in the corporate debt sector eased, with the CDX Investment Grade index spread tightening. Bond ETFs eligible for central-bank purchases rallied and the dollar retreated versus major peers.Economic ShutdownMonday’s Fed action followed an already-dizzying number of steps taken by Chairman Jerome Powell in the past three weeks that would have been unthinkable just months ago. They represent a dramatic reaction to the sudden stop inflicted on the economy by the contagion and by the subsequent panic among investors.Group of 20 finance ministers and central bank chiefs separately joined an emergency call to work on a joint response to the economic blow dealt by the pandemic.The U.S. economy is reeling as cases rise and the death toll mounts. Federal Reserve Bank of St. Louis President James Bullard predicted the U.S. unemployment rate may hit 30% in the second quarter, along with a 50% drop in gross domestic product. Morgan Stanley expects the U.S. economy to plummet 30% in the second quarter.The package included several unprecedented steps for the Fed, including intervention in the corporate bond market, purchases of commercial asset-backed mortgages and exchange-traded funds, and, if Congress clears the way, a significant Main Street lending program directly aimed at aiding small businesses.Not a ‘Slush Fund’“This is not a slush-fund,” U.S. Treasury Secretary Steven Mnuchin told Fox Business earlier on Monday. “It’s a mechanism we can use working with the Federal Reserve to provide another $4 trillion of liquidity into the market. That’s on top of the Fed’s balance sheet. This is a massive liquidity program.”Beyond the unlimited quantitative easing program, the new emergency facilities will employ a total of $300 billion, backed by $30 billion from the Treasury’s Exchange Stabilization Fund.Roberto Perli, a former Fed economist and partner at Cornerstone Macro LLC in Washington, said he expects those facilities to grow substantially if Congress moves ahead with plans to pump more money into the ESF.The draft of an economic aid bill currently being hashed out on Capitol Hill included $425 billion for the ESF to support Fed actions.The Fed’s new credit facilities carry limits on paying dividends and making stock buybacks for firms that defer interest payments, but have no explicit restrictions preventing beneficiaries from laying off workers.The Fed said a week ago it would buy at least $500 billion of Treasuries and $200 billion of agency MBS. The Fed will now make those purchases unlimited and will take on a slew of new efforts, many aimed at directly aiding employers and households, as well as cities and states.“This is a great step forward,” said Julia Coronado the president of MacroPolicy Perspectives. “Getting to the corporate bond market was critical. A lot of people needed to be clear the QE was unconstrained.”Other HighlightsTwo more programs were created to support large employers -- a Primary Market Corporate Credit Facility for new bond and loan issuance, and a Secondary Market Corporate Credit Facility to provide liquidity for outstanding corporate bonds.Yet another program, a Term Asset-Backed Securities Loan Facility, will “enable the issuance of asset-backed securities backed by student loans, auto loans, credit card loans, loans guaranteed by the Small Business Administration and certain other assets.”The central bank also said it would expand the existing Money Market Mutual Fund Liquidity Facility to include a wider range of securities, including municipal variable-rate demand notesFinally, the Fed said it would expand the existing Commercial Paper Funding Facility to also include high-quality municipal debt, another move to help cash-strapped states and cities.“The Fed’s latest moves signal a resounding ‘whatever it takes’ approach from the central bank, and dispel any notion that monetary policy makers are either sparing ammunition or running out of unconventional tools,” Andrew Husby and Carl Riccadonna, of Bloomberg Economics, wrote in a note to clients.(Updates with outlook for more actions in sixth paragraph, plus markets in ninth.)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.

  • Economist: ‘We’re gonna have a shutdown in the housing market’
    Yahoo Finance

    Economist: ‘We’re gonna have a shutdown in the housing market’

    The novel coronavirus outbreak will likely bring the U.S. housing market to a halt, according to one economist.

  • Financial Times

    Wells Fargo asks Fed to lift cap on growth in wake of virus crisis

    , saying it would allow the US bank to extend support to businesses and customers hit by the economic fallout of the coronavirus pandemic. People familiar with the situation said the San Francisco-based bank approached the Fed about a temporary or permanent lifting of the $1.95tn asset cap, which has been a curb on its growth and profitability since its imposition in 2018. , an outsider brought in as chief executive in October, and the issue has become acute as the Fed tries to encourage banks to extend credit to customers who have seen their revenues and incomes plummet this month.

  • Business Wire

    Wells Fargo Announces Aid for Customers and Communities Impacted by COVID-19

    Wells Fargo & Company (NYSE: WFC) today announced additional comprehensive steps to help customers, communities and employees grappling with the impact of COVID-19. The company has suspended residential property foreclosure sales, evictions and involuntary auto repossessions. Additionally, the Wells Fargo Foundation will increase its charitable donations to $175 million to help address food, shelter, small business and housing stability, as well as to provide help to public health organizations.

  • Fed Expands Emergency Program to Include Muni Funds After Rout
    Bloomberg

    Fed Expands Emergency Program to Include Muni Funds After Rout

    (Bloomberg) -- The Federal Reserve said Friday it had expanded its emergency program to provide liquidity to money market mutual funds, allowing the purchase of assets from single-state and other tax-exempt municipal money market funds.Shares of BlackRock Inc.’s iShares National Muni Bond ETF, the biggest municipal-bond exchange-traded fund, traded higher after the announcement.“Thank you to @federalreserve,” U.S. Treasury Secretary Steven Mnuchin said in a tweet. “Today I approved the expansion of the Money Market Mutual Fund Liquidity Facility to include municipal securities. This will create additional liquidity to support the states and municipalities!”The move followed the Fed’s Wednesday night announcement that it had created a Money Market Mutual Fund Liquidity Facility aimed at relieving pressure from prime money market funds that were seeing large institutional-customer withdrawals. The Treasury Department will provide $10 billion of credit protection.Money market funds provide credit to everything from banks through repurchase agreements to corporations through purchases of commercial paper. They are a critical link the chain of short-term finance where companies borrow and lend outside the formal banking system.“Fed purchase of municipal bonds is unprecedented,” said Mark Zandi, chief economist for Moody’s Analytics. “They didn’t go that far in the financial crisis. It illustrates the severe stress on credit markets, and how aggressive and creative the Fed needs to be to keep credit flowing.”Risk Free LoansThe program, administered by the Boston Fed, will provide risk-free loans to banks that will purchase a range of assets from prime, and now municipal, money market funds, with the assets deposited with the Fed as collateral. By expanding the program to include short-term municipal bonds, it may ease the difficulty cities and states are having in raising funds.The program, however, has its limits. Fed officials see the universe of eligible municipal assets at around $40 billion. Money funds generally cannot purchase securities that are further than 13 months from maturity.The move by the Fed is a “welcomed starting point to offer the municipal market some relief from the liquidity logjam,” said Gabriel Diederich, a portfolio manager at Wells Fargo Asset Management.Yields on short-dated municipal bonds, which are among the easiest to sell, have ricocheted upwards, climbing to 2.84% from 0.47% on March 9, according to Bloomberg BVAL pricing scales as of 1:00 p.m. New York time.Others were even more upbeat.”It’s a major help to high-grade municipals, where liquidity pressures have concentrated on money market funds,” said Matt Fabian, a partner at Municipal Market Analytics, an independent research firm. “The program gives the funds an ability to afford investor redemptions without creating additional pressure on the underlying assets. Of course, liquidity is an issue all along the curve, but giving the front a boost is better than nothing.”May Be ExpandedOfficials at the central bank indicated eligible securities could eventually be expanded to include variable-rate municipal bonds.The global health crisis has hammered municipal bonds as states and localities strain resources to prepare a medical response, help local businesses and suffer tax revenue losses as they ask people to stay at home.Municipal bonds were headed for an 8% drop in March, their worst month of performance since 1981, according to Bloomberg Barclays indexes.Prime funds are those money funds eligible to invest in debt not backed by the U.S. government.(Updates with additional details from third 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.

  • Fed walks tightrope on loosening bank regulations amid coronavirus response
    Yahoo Finance

    Fed walks tightrope on loosening bank regulations amid coronavirus response

    Regulators are encouraging banks to tap into capital and liquidity to lend into an economy affected by the coronavirus but further regulatory easing could be coming.

  • Mnuchin Warns Virus Could Yield 20% Jobless Rate Without Action
    Bloomberg

    Mnuchin Warns Virus Could Yield 20% Jobless Rate Without Action

    (Bloomberg) -- Treasury Secretary Steven Mnuchin raised the possibility with Republican senators that U.S. unemployment could rise to 20% without government intervention because of the impact of the coronavirus, according to people familiar with the matter.Mnuchin discussed the scenario with the lawmakers on Tuesday as he proposed an economic stimulus of $1 trillion or more.He told the senators that he believes the economic fallout from the coronavirus is potentially worse than the 2008 financial crisis.Extraordinarily high unemployment, he said, is a possibility if lawmakers don’t swiftly provide financial assistance to wage workers and small- and medium-sized businesses.“During the meeting with Senate Republicans today, Secretary Mnuchin used several mathematical examples for illustrative purposes, but he never implied this would be the case,” Treasury Department spokeswoman Monica Crowley said.For many lawmakers, plunging stock prices and an abrupt drop-off of consumer spending during a time of social distancing has crystallized the need for Congress to act quickly and boldly. The U.S. Federal Reserve has already used much of its toolbox to shore up the economy -- bringing rates close to zero and announcing crisis-era lending programs -- leaving policy makers to ease the extent of the damage with fiscal stimulus.Dramatic Economic TurnThe unemployment scenario raised by Mnuchin would be a dramatic turn from February, when the U.S. jobless rate fell back to a half-century low of 3.5% as average hourly earnings climbed a steady 3% from a year earlier.But since then, the coronavirus has continued to spread in the U.S. On Tuesday, there had been more than 6,200 cases in the country and 105 deaths, according to a tally by Johns Hopkins University.A surge in unemployment of the scope Mnuchin described is greater than what has so far been forecast by bank economists -- though economists continue to stress the uncertainty of any prediction at this time. On Tuesday, Wells Fargo & Co. updated its forecast to show the unemployment rate would reach 5.3% in the fourth quarter.The Trump administration is discussing a stimulus plan that could include direct payments of $1,000 or more to Americans.Mnuchin pitched $250 billion in checks to be sent at the end of April with a second set of checks totaling $500 billion four weeks later if there’s still a national emergency, according to a person familiar with the matter.(Adds Wells Fargo forecast in ninth 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.

  • Wow! Insider Buy Activity Soars
    Yahoo Finance

    Wow! Insider Buy Activity Soars

    We can well imagine that “wow” has been uttered by more than just a few people of late - about the spread of the coronavirus, the impact of the virus on share prices and the global economy, and about the change in lifestyle that has taken place in a mere matter of weeks. But for those of us who follow insider-sentiment data from Vickers Stock Research, recent data has led us to a “double-wow”. Two weeks ago, we pointed out that corporate insiders reacted to stock price declines by increasing their purchases of shares in the companies at which they work.

  • Insider Buying: The Wells Fargo & Company (NYSE:WFC) President Just Bought US$5.0m Worth Of Shares
    Simply Wall St.

    Insider Buying: The Wells Fargo & Company (NYSE:WFC) President Just Bought US$5.0m Worth Of Shares

    Wells Fargo & Company (NYSE:WFC) shareholders (or potential shareholders) will be happy to see that the President...

  • Bloomberg

    Three Hours on Hold? Banks Inundated With Nervous Callers

    (Bloomberg) -- Banks including Wells Fargo & Co., Bank of America Corp., Citigroup Inc. and Capital One Financial Corp. have assured nervous customers that they’ll provide assistance to those impacted financially by the coronavirus.“Call us and we’ll make it right,” Bank of America Chief Executive Officer Brian Moynihan said Sunday on CBS News’ “Face the Nation.”But reaching a representative is proving more and more difficult as customer-service centers are inundated by calls from clients seeking help.“Due to staffing issues resulting from our response to Covid-19, also known as coronavirus, wait times may be longer than normal,” callers to Wells Fargo’s customer-service line were told Monday. The bank said last week that it was “having a larger-than-normal number of employees work remotely on a specific day.” A Wells Fargo spokeswoman didn’t respond to questions about call-center employees.The problem is twofold: Banks are trying to fight the spread of the highly contagious virus by keeping some employees at home, while call volumes are higher than normal as more American workers become concerned about paying credit-card bills and making mortgage payments as workplaces close amid the spread of the coronavirus.Particularly hard hit are workers in the service industry as governors in New York, New Jersey, California and other states order businesses such as bars, movie theaters, restaurants and gyms shut to fight the spread of the coronavirus. President Donald Trump said Monday afternoon that Americans should stop eating out.‘Longer Than Usual’“As we address the needs of our customers, including those impacted by Covid-19, call wait times may be longer than usual,” Capital One callers were told. As of Monday morning, hold times to reach a customer representative at the bank were in excess of 20 minutes, according to calls placed by Bloomberg. That compares with an average of 41 seconds in 2018, according to a study from MyBankTracker.Capital One spokeswoman Sarah Craighill acknowledged that wait times are longer than normal, and said that digital tools, including the bank’s mobile app, are the fastest way to reach the company. “We are grateful to our customers for their patience and understanding as we navigate these uncertain times together,” she said in an email.Some customers have taken to social media to express their frustration.“Yesterday I sat on hold for 3 hours and got nothing accomplished,” one user said on Twitter. “I’ve been disconnected 7 times. I spend an insane amount of money on Citi cards annually. This is awful customer service.”Citigroup has offered to waive monthly service fees and penalties for early certificate of deposit withdrawals.The bank’s U.S. customer calls related to Covid-19 represents a small portion of overall calls, with the focus being on trip cancellations, billing disputes and market volatility attributable to the virus, a Citigroup spokeswoman said. The majority of operations-centers employees continue to report to the office, while those who can work from home are doing so, she said.When asked about what Bank of America would do for customers who can’t make mortgage or credit-card payments, Moynihan said in the interview Sunday that they can “call the number on the card and they say, ‘I’m affected by the disease,’ and we’ll defer the payment.”To get that deferral, customers may be on hold for more than 30 minutes, based on wait times Monday.“Overall, call volumes and wait times have remained stable, though we continue to prepare for increased volumes,” Bank of America spokesman Bill Halldin said in an email. The company is using social distancing and additional cleaning at its call centers, and some customer-service employees are working from home.(Updates with Citigroup comments in fourth-to-last 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.

  • Business Wire

    Wells Fargo Bank Decreases Prime Rate to 3.25 Percent

    Wells Fargo Bank, N.A., said today it is decreasing its prime rate to 3.25 percent from 4.25 percent, effective today, March 16, 2020.

  • Business Wire

    Jack Ginter to Lead Abbot Downing

    Wells Fargo & Company today announced Jack Ginter as the head of Abbot Downing, the boutique business serving ultra-high-net-worth clients. Abbot Downing is part of Wells Fargo Wealth & Investment Management.

  • Business Wire

    Wells Fargo Names Ellen Patterson General Counsel

    Wells Fargo & Company (NYSE: WFC) today announced that Ellen Patterson will join the company as its senior executive vice president and general counsel, effective March 23, 2020. Reporting to CEO Charlie Scharf, Patterson will be responsible for all legal affairs at the company and will serve on the company’s Operating Committee.

  • Bloomberg

    Wells Fargo Ex-Directors Take Blows From Congress After Exit

    (Bloomberg) -- The former chair of Wells Fargo & Co.’s board said she resigned to remove a distraction as the scandal-plagued bank works to fix its problems and that the company is well-positioned for a turnaround under new Chief Executive Officer Charlie Scharf.“I believe that today the company has the right team and path forward,” Betsy Duke, who quit earlier this week, told lawmakers in Washington on Wednesday. “This company must move forward.”Duke and former board member James Quigley, who both resigned Sunday, appeared for the second in a trio of Wells Fargo hearings this month before the House Financial Services Committee. Wednesday’s session was held to examine “the role of the board of directors in the bank’s egregious pattern of consumer abuses,” according to the committee.Like his former fellow director, Quigley said Wednesday that his position at Wells Fargo was a hindrance. “I decided to resign from the board to permit the bank to turn the page,” he said.Quigley and Duke, a former Federal Reserve governor, faced a growing chorus of calls for their ousters after Democrats atop the committee last week issued a scathing report on the bank’s response to a series of scandals.“Their resignations do not absolve them of their failures,” Congresswoman Maxine Waters, the committee’s chairwoman, said Wednesday. “We’re examining this conduct and this dereliction of duty.”Under questioning from Waters and her fellow committee members, Duke said Wells Fargo’s board expressed “regular concern” about management’s speed responding to regulatory orders and making risk-management improvements. New CEO Scharf, whose “job is not going to be easy,” is focused on resolving the bank’s regulatory issues, Duke said.Political FalloutDuke also said, in response to a question from Ohio Republican Warren Davidson, that some former Wells Fargo employees should be prosecuted.“I would say yes,” Duke said. “When we did our investigation of what happened in sales practices, we delivered all of the evidence that we found to the SEC, the DOJ, both civil and criminal,” she said, referring to the Securities and Exchange Commission and Department of Justice. Quigley declined to answer Davidson’s question.Wells Fargo’s leaders have been in Washington’s crosshairs for years in the wake of consumer scandals that began with the 2016 revelation that employees opened millions of potentially fake accounts to meet sales goals. The company has faced unprecedented political and regulatory fallout, including repeated hearings, record fines for former executives and a growth cap put in place by the Fed.Scharf, not yet five months into his tenure atop Wells Fargo, had his own hearing Tuesday, when he told lawmakers that the bank hasn’t done enough to turn itself around and is now more focused than ever on fixing its problems.‘Very Different’“The sense of urgency within the company is very different today than it was four months ago,” Scharf, who became CEO in October, told the committee Tuesday.Two former Wells Fargo CEOs, Tim Sloan and John Stumpf, stepped down after tough hearings of their own in Washington that included calls for their ousters -- resignations noted by Waters during Tuesday’s hearing.Waters said last week that she planned, during Wednesday’s hearing, to call for Duke and Quigley to resign. Her party’s report, which mentions Duke by name dozens of times, details multiple instances when agencies including the Office of the Comptroller of the Currency and the Consumer Financial Protection Bureau took issue with the board’s efforts clean up the bank in recent years.The committee’s Republicans issued a report of their own and, during Wednesday’s hearing, criticized the board for its oversight of the bank.(Updates with Duke’s comments on prosecuting employees starting in eighth paragraph.)To contact the reporters on this story: Hannah Levitt in New York at hlevitt@bloomberg.net;Elizabeth Dexheimer in Washington at edexheimer@bloomberg.netTo contact the editors responsible for this story: Michael J. Moore at mmoore55@bloomberg.net, Daniel Taub, Steve DicksonFor 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.