|Bid||25.45 x 900|
|Ask||25.54 x 800|
|Day's range||25.45 - 25.56|
|52-week range||17.28 - 27.15|
|Beta (5Y monthly)||1.16|
|PE ratio (TTM)||8.81|
|Forward dividend & yield||1.41 (5.55%)|
|Ex-dividend date||28 May 2020|
|1y target est||N/A|
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.
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.
Wells Fargo & Company (NYSE: WFC) today released the results of its company-run stress test conducted in accordance with the Dodd-Frank Wall Street Reform and Consumer Protection Act (DFA).
(Bloomberg) -- The Federal Reserve told the biggest U.S. banks they can’t increase dividends or resume buybacks through at least the third quarter as uncertainty over the course of a global pandemic weighs on lenders.The industry performed well in annual stress tests, according to a statement Thursday from the central bank, but a separate review of the effects of the coronavirus on the economy and financial system uncovered potential risks that left the fate of their dividends in question.The Fed “is taking action to assess banks’ conditions more intensively and to require the largest banks to adopt prudent measures to preserve capital in the coming months,” Fed Vice Chairman for Supervision Randal Quarles said in the statement. “The banking system remains well capitalized under even the harshest of these downside scenarios.”The Fed capped dividends at second-quarter levels and said future payouts would be limited by a formula based on recent earnings.That left Wells Fargo & Co., where profits slumped 89% in the first quarter, most at risk for a dividend cut. Earnings power at the San Francisco-based company has declined with the economic meltdown and, unlike many of its competitors, Wells Fargo doesn’t have a sizable trading operation benefiting from market volatility. Under the new rule, a bank’s dividend can’t exceed average quarterly earnings for the previous four quarters.There’s still a chance Wells Fargo can continue paying a dividend. Assuming its second-quarter income is as low as in the first three months of the year, its average for the past four quarters would be $2.2 billion, higher than the $2.1 billion the bank paid in dividends in the first quarter.Goldman, Morgan StanleyGoldman Sachs Group Inc. and Morgan Stanley fared the worst among U.S.-based banks in the regular portion of the stress tests, with their capital levels declining 6.4 and 5.5 percentage points, respectively, under a hypothetical economic crisis devised by the Fed.Both firms were expected to do worse than other banks because their businesses are more reliant on capital markets, which take a heavier beating in the regulator’s crisis scenario.Representatives of Goldman Sachs and Morgan Stanley declined to comment on the stress tests, and Wells Fargo said it had no immediate comment. The central bank is also requiring banks to re-submit capital plans later in the year, a move unprecedented in the past decade of Fed testing. Quarles said the board “will use this information to make a further assessment of the banks’ financial conditions and risks.”Alison Williams, an analyst at Bloomberg Intelligence, called that move a “broad negative” for banks, since it “signals more uncertainty.”Shares of Goldman Sachs were down more than 4% in extended trading in New York at 5:24 p.m. and Well Fargo slumped 3.5%. Morgan Stanley was virtually unchanged.‘Not Too Harsh’Analysts weren’t expecting buybacks to resume any time soon or that any bank would be able to boost dividends. Keefe, Bruyette & Woods said JPMorgan Chase & Co. and Citigroup Inc. might even see dividend cuts resulting from a new “sensitivity analysis” the Fed used to gauge the impact of the pandemic. Morgan Stanley analysts had said Goldman’s payout was under threat.“This is not as drastic as it sounds as dividends are basically being preserved and buybacks were off the table anyway,” said Adam Gilbert, head of the financial-services advisory practice at PricewaterhouseCoopers. “Initially it’s not too harsh.”The sensitivity analysis sought to capture how financial firms are positioned to handle financial pressure caused by the pandemic. Those results were only released in aggregate form, showing how all the 34 banks being tested would fare under more severe scenarios.Policy makers considered three potential scenarios. Results from the quick-recovery, V-shaped outcome echoed those of the regular stress tests, with the aggregate capital level of the firms dropping by 2.5 percentage points versus 2.1 in the analysis that didn’t take into account the pandemic.But a slower recovery would mean a much harsher impact, with the group’s capital declining 3.9 percentage points in the U-shaped rebound and 4.3 percentage points in the longest, W-shaped scenario, which assumes a second wave of coronavirus containment measures.Brainard ObjectsFed Governor Lael Brainard said in light of the potential risk of an even more severe downturn, it was a mistake to let banks keep paying dividends.“Despite the substantial likelihood that banks will need larger capital buffers to absorb losses under plausible scenarios, the authorization permits distributions that will deplete capital buffers,” Brainard said in a separate statement.In the past, the nation’s largest banks would disclose their buyback and dividend targets for the next 12 months within minutes of the Fed’s announcement of stress test results. But this time, policy makers asked them not to release capital-distribution plans until Monday.Immediate decisions on distributions aren’t possible anyway because of changes to the exam. For one, capital plans are no longer directly approved by the Fed during the stress test. Instead, regulators assign each company a “capital buffer” based on their performance in the review. Each bank then has the freedom, without prior Fed approval, to distribute cash to shareholders as long as they stay within required minimums.Adding another layer of complexity to the calculation was the addition of the side tests related to the impact of the pandemic. Bank officials are seeing those results for the first time Thursday, and will need time to adjust their payout targets before making them public.Political PressureThe stress tests, begun in 2009 as a tool to help avoid another financial crisis, examine the biggest banks’ ability to weather extreme economic downturns without the need for government bailouts. They have been the single most important factor determining how much capital Wall Street banks need to ward off another disaster.In a letter earlier this week, Democratic senators including Sherrod Brown and Elizabeth Warren urged the central bank to “bolster the resilience of the banking system in the face of a deeply uncertain negative outlook and implement an across-the-board suspension on bank dividends and discretionary bonus payments.”The largest U.S. lenders suspended buybacks in March until the end of the second quarter to conserve capital for the pandemic. Analysts aren’t expecting them to resume until the middle of next year.(Updates with analysts’ comments starting in 11th paragraph, adds share prices in 12th.)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 Fed will bar big banks from increasing their dividend payments, following the central bank’s annual stress tests that included a “sensitivity” analysis incorporating the impact of the COVID-19 crisis.
After reaching a 20-year high in the first quarter, U.S. investor optimism tumbled in the second quarter amid mounting economic fallout from COVID-19.
Wells Fargo enters renewable energy agreements for 150K MWh annually with Shell Energy and MP2 energy, supporting new solar assets in CA and VA
(Bloomberg) -- The Trump administration, following a backlash, said it would release details about companies that received loans of $150,000 or more from a coronavirus relief program for small businesses.Treasury Secretary Steven Mnuchin said last week the firms that got billions of dollars in taxpayer-funded aid wouldn’t be disclosed, sparking fury from Democrats and others. In a joint statement on Friday night, the Treasury Department and the Small Business Administration said the company names, addresses, demographic data and other information would be disclosed in five ranges -- starting with $150,000 to $350,000, and going up to between $5 million and $10 million. For loans below $150,000, only totals will be released and will be aggregated by zip code, by industry, by business type, and by various demographic categories, the agencies said. The loans above $150,000 account for almost 75% of the total loan dollars approved, they said. The statement didn’t say when the data would be released.Lawmakers demanded the disclosure of details about Paycheck Protection Program loans after Mnuchin said at a Senate committee hearing on June 10 that the names of companies that received forgivable loans and the amounts were proprietary or confidential. The administration had previously said the details would be disclosed, and the PPP application said such data would “automatically” be released.Officials had expressed concerns about releasing the details because a company’s payroll is used to determine the loan amount, and some independent contractors and small businesses use their home addresses that would then be disclosed.“We have been able to reach a bipartisan agreement on disclosure which will strike the appropriate balance of providing public transparency, while protecting the payroll and personal income information of small businesses, sole proprietors, and independent contractors,” Mnuchin said in a statement on Friday. Critics said the public has a right to know how taxpayer dollars were being spent, and that more detail was needed to know whether PPP was serving businesses that need help. Eleven news organizations, including Bloomberg News, sued to make details of the loan recipients public.The SBA reported that as of Friday night, loans had been approved for almost 4.7 million small businesses totaling $514.5 billion. As of June 12, there were 3.9 million loans of less than $150,000 totaling $136.7 billion and almost 650,000 larger loans worth $375.6 billion.Not Far EnoughReleasing details about companies with loans of more than $150,000 is a step in the right direction but doesn’t go far enough because it means the identities of more than 85% of loan recipients will still be withheld, said Democratic Representative James Clyburn of South Carolina, chairman of the Select Subcommittee on the Coronavirus Crisis.“This is far from the full transparency that American taxpayers deserve,” Clyburn said in a statement.Democrats on the House panel have sent letters to several banks, including JPMorgan Chase, Bank of America, Wells Fargo & Co and Citigroup Inc., asking whether they favored larger, well-connected companies over smaller firms from rural or minority communities when making PPP loans. The Democrats also demanded that the Trump administration release the names of all PPP borrowers.Friday’s action “is an overdue step toward securing the transparency needed to ensure struggling small businesses, particularly minority, women and veteran-owned businesses, are getting the vital assistance they need to survive and retain their workers,” House Speaker Nancy Pelosi said in a statement on Saturday. Republican Senator Marco Rubio of Florida, chairman of the Small Business & Entrepreneurship Committee, said the public deserves to know how effective the PPP has been, but that there are legitimate concerns about disclosing information about small firms.“Today’s announcement strikes a balance between those concerns and the need for transparency,” Rubio said in a statement.Lawmakers have also called on Treasury and the SBA to provide details about its coronavirus relief loans to the Government Accountability Office, which is preparing a report about how relief dollars were spent.(Updates with Clyburn comment from tenth 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.
Deadline Reminder: The Law Offices of Howard G. Smith Reminds Investors of Looming Deadline in the Class Action Lawsuit Against Wells Fargo & Company
Wells Fargo's (WFC) partnership with FinTech firm iCapital is aimed at providing best-in-class solution to its clients with innovative alternative investments.
Wells Fargo & Company (NYSE: WFC) today announced that Wells Fargo Investment Institute, Inc., (WFII) has entered into an agreement to sell its Global Alternative Investments (GAI) Feeder Fund Platform to iCapital Network1. In addition, Wells Fargo today announced that it is making a strategic investment in iCapital under the terms of iCapital’s latest fundraising round.