FIRST FEMALE DIRECTOR IN
HISTORY AT THE CIA.
WE WILL KEEP AN EYE ON THIS
AND BRING YOU RESULTS AFTER
THE VOTING WRAPS UP.
ANOTHER DAY, ANOTHER HIT TO
WELLS FARGO'S IMAGE.
THE LATEST, EMPLOYEES FROM
WELLS FARGO'S UNIT THAT DEALS
WITH BUSINESS, NOT CONSUMER,
APPARENTLY ALTERED INFORMATION
RELATED TO CORPORATE
CUSTOMERS.
EVERYTHING FROM SOCIAL
SECURITY NUMBERS TO OTHER
IDENTIFIERS.
THIS AFTER MULTIPLE SCANDALS
AND SANCTIONS AND PENALTIES
FOR ALL KINDS OF OTHER
ISSUES.
WHAT IS GOING ON WITH THIS
COMPANY AND THE STOCK.
SHOULD BE IN YOUR PORTFOLIO?
YOU WATCHED, THE REASON WE
LIKE YOU HERE IS BECAUSE YOU
WATCH FROM A REGULATORY
STANDPOINT, I WOULD THINK THIS
IS TOXIC FOR THEM.
BUT YOU SAY WHAT?
>> I'M POSITIVE ON WELLS FARGO
TO BUT NOT BECAUSE THEY'RE
DOING A GREAT JOB.
BUT BECAUSE THE ASSETS ARE
CAPPED WITH THE AGREEMENT WITH
THE FEDERAL RESERVE.
ALL THE EARNINGS THEY HAVE,
THEY HAVE TO RETURN IT IN SOME
WAY SHAPE OR FORM.
>> WHAT YOU MEAN CAP?
THE FED CAPPED WELLS FARGO'S
ABILITY TO GROW DUE TO
INADEQUATE RISK CONTROL.
THAT WAS AN UNPRECEDENTED
SMACK DOWN OF A U.S. BANK.
>> IT CERTAINLY WAS.
AND WELL-DESERVED.
TODAY'S EVENTS SHOW THAT.
>> TODAY'S EVENTS SHOW THAT
THE STOCK IS DOWN ANOTHER ONE
AND TWO THIRDS PERCENT.
THIS IS LIKE DEATH BY A
THOUSAND VIOLATIONS.
>> BUT THEY WILL STILL EARN 22
OR $23 BILLION A YEAR END THEY
CAN'T GROW SO WHAT DO THEY DO
WITH THOSE EARNINGS.
>> LET'S TALK ABOUT WHAT THEY
DID THIS TIME AROUND.
BY THE WAY, WELLS FARGO
REPORTED THIS.
THEY DISCOVERED IT AND
REPORTED IT FOR THE ALTERED
INFORMATION ON BUSINESS
DOCUMENTS AS PART OF AN ANTI-
MONEY LAUNDERING DEADLINE THEY
WERE SUPPOSED TO REACH.
>> YES.
>> IS AT THE WORST THING IN
THE WORLD?
DID THEY PUT FAKE INFORMATION
LIKE THEY DID WITH MORE THAN
3 MILLION CONSUMER ACCOUNTS
TWO YEARS AGO.
>> SO THAT'S UNCLEAR BUT IT
DOESN'T APPEAR TO BE FAKE
INFORMATION.
IT APPEARS THEY WERE USING
OTHER SOURCES OF INFORMATION
AS OPPOSED TO GOING TO THE
CLIENT AND GETTING THE
INFORMATION.
THEY THEN ADDED IT TO THE
DOCUMENTS THEY HAD IN ORDER TO
MEET THE DEADLINE.
THEY WERE TRADING INFORMATION
OR CREATING INFORMATION.
THE INFORMATION THEY HAD MAY
HAVE BEEN STALEMATE OR DATED
ARE BLANK
HAVE BEEN STALEMATE OR DATED ARE BLANK SO THEY GOT IT AS
OPPOSED TO GOING TO THE CLIENT
THEY WENT TO OLDER DOCUMENTS
AND PEOPLE IN SOURCE
INFORMATION.
THAT'S THE AIR ON THEIR
BEHALF.
>> WE HAD A WELLS FARGO
SHAREHOLDER WHO IS ALSO AN
ACTIVIST PRINT HE WAS KICKED
OUT OF THE SHAREHOLDER MEETING
LAST YEAR FOR PRESSING THE
BOARD ON WHAT THEY WERE GOING
TO DO TO PREVENT THESE KINDS
OF SCANDALS.
HE WAS LITERALLY DRAGGED OUT
OF THAT MEETING.
HE TOLD US THE WELLS FARGO
BRING
BING
BRIG
BRING, THAT STAGECOACH
BRAND IS BEING BURNED TO THE
GROUND BY THESE ISSUES.
THE ANNUAL HIGH OF THE STOCK
WAS $66.31 PRETTY CAN SEE
RIGHT NOW IT'S 5408.
THAT'S NOT THE BIGGEST DROP
AND CERTAINLY NOT A TWO WEEK
LOW, BUT IF I'M AN INVESTOR
AND CERTAINLY NOT A TWO WEEK LOW, BUT IF I'M AN INVESTOR,
DO I REALLY WANT TO PUT THIS
IN MY PORTFOLIO RIGHT NOW, OR
DO I WAIT UNTIL ALL OF THESE
ISSUES SHAKEOUT QUESTION
THAT.
>> THAT'S A GREAT QUESTION.
WE DON'T KNOW HOW MANY ISSUES
THERE ARE.
THERE SEEMS TO BE WEEKLY OR
MAYBE MONTHLY, AT THE END OF
THE DAY WHAT WE HAD IS A
WHOLESALE CHANGE IN THE
MANAGEMENT TEAM.
NOW WE HAVE TIM SLOAN RUNNING
THE SHOP.
>> IS A GOOD OPERATOR.
>> IT DOESN'T LOOK LIKE IT TO
SOME PEOPLE.
>> OF COURSE IT DOESN'T THESE
ARE LEGACY ISSUES THAT KEEP
COMING THROUGH.
SO WHAT THEY'VE ALREADY
IMPLEMENTED IS A BROAD RISK
AND COMPLIANCE SYSTEM THAT'S
GOING ITS PLACE.
THESE ISSUES HAPPEN LATE LAST
YEAR END EARLY LAST YEAR.
IT SHOWS THE COMPOUND
COMPLIANCE PROGRAMS ARE
PICKING THESE THINGS UP
QUICKER AND CAN RECTIFY IT
FASTER.
THEY SAY THEY CAN GET OUT OF
THIS BY 2019, I THINK THAT'S A
BIT EARLY.
2020, MAYBE 21.