There Are No Excuses for Wells Fargo's Disastrous Second Quarter
I think many investors have been willing to give Wells Fargo (NYSE: WFC) the benefit of the doubt over the past few years. After its phony-account scandal in 2016, the bank agreed to pay a massive $3 billion settlement. Then the Federal Reserve placed a $1.95 trillion asset cap on the bank. Then the coronavirus pandemic hit.
While the company's stock price continued to fall, many saw it as an opportunity to get in on a bank with a strong business model that's too big to fail. The upside seemed enormous, and still could be.
But after a disastrous second quarter resulting in a $2.4 billion loss and an 80% reduction in the quarterly dividend, it's hard to make excuses for Wells Fargo's worst quarter since the Great Recession.
Source Fool.com
