Sept. 12, 2024:
"Citi analyst Keith Horowitz calls Wells Fargo’s formal agreement with the Office of the Comptroller of the Currency related to deficiencies concerning its financial crimes risk management as a “step back.” However, this is not a consent order and does not include a monetary civil penalty, the analyst tells investors in a research note. As a result, the firm does not expect a meaningful change to the expense outlook and it notes Wells reiterated its outlook as recently as this week. The stock traded down 4% on the news, which “seems strong” but reflects the overhang from existing consent orders, contends Citi. It keeps a Neutral rating on the shares with a $63 price target."
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Sept. 13, 2024:
"JPMorgan says that in a “significant new negative development” for Wells Fargo, the bank’s anti-money laundering issue is back with the Office of the Comptroller of the Currency announcing an enforcement agreement for anti-money laundering and financial crimes “on an enterprise-wide basis, not just a particular business area.” The news is very surprising given that Wells had resolved a consent order for anti-money laundering in January 2021 after many years of work and expense, the analyst tells investors in a research note. JPMorgan says fixing this will likely add to operating expenses and much of the expense will likely be ongoing. It will also slow the bank’s growth and expansion, the firm contends. JPMorgan keeps a Neutral rating on Wells Fargo."
Source: The Fly.
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