Wells Fargo Stocks Declined as it Settled a $37 Million Fine

Wells Fargo Stocks Declined as it Settled a $37 Million Fine

On Tuesday, Wells Fargo stocks declined as the bank settled a $37.00 million fine from a government lawsuit. 

The third-largest US bank by asset size shed 0.75% or 0.36 points to $47.56 per share, reversing its rally last week.

Wells Fargo is a diversified financial services corporation that provides banking, investment, and mortgage services.

Moreover, the holding firm has a market capitalization of $195.30 million and shares outstanding of $4.11 billion.

In addition, it holds a revenue of $40.93 billion with $3.45 earnings per share. 

For the second time this month, the Justice Department accused Wells Fargo of overcharging its commercial customers on their foreign exchange transactions from 2010-2017.

The suit stated that the finance company concealed the overcharges and accumulated millions of revenue from the currency affairs.

Subsequently, the business agreed to settle the charges wherein the $35.30 million would proceed to the affected customers.

Then, Paul J. Kohn, the whistleblower who initiated the proceedings, would receive the remaining $1.60 million.

Consequently, this arrangement is the latest from the firm’s slew of regulatory matters since its fake accounts scandal. 

Earlier this month, Wells Fargo resolved a $250.00 million penalty from the Office of the Comptroller of the Currency.

The government faulted the company’s gradual action in addressing its long-standing conflicts. 

Accordingly, Wells Fargo has paid more than $4.00 billion worth of penalties since 2016.

Meanwhile, regulators are still disappointed with the financial institution’s efforts to address its past misconduct.

Furthermore, the recent plunge reflects that market participants were on tenterhooks.

Also, investors focused on the efforts of the new CEO Charlie Scharf, who continues to clean up the firm’s scandals from the previous years.

Investment Banking Shares Up as Wells Fargo Fell

Meanwhile, other US investment banking shares hiked as Wells Fargo plunged. 

For instance, JPMorgan Chase, the largest bank in the country, soared 2.42% or 3.94 points or $166.98 per share. 

Moreover, it currently stands with a market capitalization of $498.96 billion and $2.99 shares outstanding. 

Consequently, the Bank of America Corp increased 2.66% or 1.12 points to $43.26 per share. 

In addition, the second-largest financial institution bears a market capitalization of $364.03 billion and shares outstanding of $8.41 billion. 

Similarly, Citigroup Inc climbed 1.52% or 1.08 points to $72.26 per share. 

Subsequently, the fourth-main investment banking company owns a $146.46 billion market cap and $2.03 billion shares outstanding.