WEBVTT

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FIRST FEMALE DIRECTOR IN

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HISTORY AT THE CIA.

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WE WILL KEEP AN EYE ON THIS

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AND BRING YOU RESULTS AFTER

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THE VOTING WRAPS UP.

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ANOTHER DAY, ANOTHER HIT TO

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WELLS FARGO'S IMAGE.

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THE LATEST, EMPLOYEES FROM

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WELLS FARGO'S UNIT THAT DEALS

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WITH BUSINESS, NOT CONSUMER,

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APPARENTLY ALTERED INFORMATION

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RELATED TO CORPORATE

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CUSTOMERS.

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EVERYTHING FROM SOCIAL

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SECURITY NUMBERS TO OTHER

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IDENTIFIERS.

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THIS AFTER MULTIPLE SCANDALS

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AND SANCTIONS AND PENALTIES

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FOR ALL KINDS OF OTHER

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ISSUES.

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WHAT IS GOING ON WITH THIS

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COMPANY AND THE STOCK.

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SHOULD BE IN YOUR PORTFOLIO?

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YOU WATCHED, THE REASON WE

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LIKE YOU HERE IS BECAUSE YOU

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WATCH FROM A REGULATORY

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STANDPOINT, I WOULD THINK THIS

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IS TOXIC FOR THEM.

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BUT YOU SAY WHAT?

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>> I'M POSITIVE ON WELLS FARGO

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TO BUT NOT BECAUSE THEY'RE

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DOING A GREAT JOB.

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BUT BECAUSE THE ASSETS ARE

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CAPPED WITH THE AGREEMENT WITH

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THE FEDERAL RESERVE.

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ALL THE EARNINGS THEY HAVE,

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THEY HAVE TO RETURN IT IN SOME

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WAY SHAPE OR FORM.

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>> WHAT YOU MEAN CAP?

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THE FED CAPPED WELLS FARGO'S

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ABILITY TO GROW DUE TO

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INADEQUATE RISK CONTROL.

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THAT WAS AN UNPRECEDENTED

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SMACK DOWN OF A U.S. BANK.

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>> IT CERTAINLY WAS.

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AND WELL-DESERVED.

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TODAY'S EVENTS SHOW THAT.

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>> TODAY'S EVENTS SHOW THAT

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THE STOCK IS DOWN ANOTHER ONE

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AND TWO THIRDS PERCENT.

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THIS IS LIKE DEATH BY A

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THOUSAND VIOLATIONS.

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>> BUT THEY WILL STILL EARN 22

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OR $23 BILLION A YEAR END THEY

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CAN'T GROW SO WHAT DO THEY DO

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WITH THOSE EARNINGS.

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>> LET'S TALK ABOUT WHAT THEY

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DID THIS TIME AROUND.

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BY THE WAY, WELLS FARGO

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REPORTED THIS.

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THEY DISCOVERED IT AND

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REPORTED IT FOR THE ALTERED

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INFORMATION ON BUSINESS

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DOCUMENTS AS PART OF AN ANTI-

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MONEY LAUNDERING DEADLINE THEY

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WERE SUPPOSED TO REACH.

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>> YES.

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>> IS AT THE WORST THING IN

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THE WORLD?

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DID THEY PUT FAKE INFORMATION

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LIKE THEY DID WITH MORE THAN

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3 MILLION CONSUMER ACCOUNTS

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TWO YEARS AGO.

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>> SO THAT'S UNCLEAR BUT IT

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DOESN'T APPEAR TO BE FAKE

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INFORMATION.

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IT APPEARS THEY WERE USING

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OTHER SOURCES OF INFORMATION

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AS OPPOSED TO GOING TO THE

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CLIENT AND GETTING THE

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INFORMATION.

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THEY THEN ADDED IT TO THE

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DOCUMENTS THEY HAD IN ORDER TO

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MEET THE DEADLINE.

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THEY WERE TRADING INFORMATION

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OR CREATING INFORMATION.

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THE INFORMATION THEY HAD MAY

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HAVE BEEN STALEMATE OR DATED

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ARE BLANK

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HAVE BEEN STALEMATE OR DATED
ARE BLANK SO THEY GOT IT AS

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OPPOSED TO GOING TO THE CLIENT

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THEY WENT TO OLDER DOCUMENTS

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AND PEOPLE IN SOURCE

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INFORMATION.

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THAT'S THE AIR ON THEIR

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BEHALF.

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>> WE HAD A WELLS FARGO

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SHAREHOLDER WHO IS ALSO AN

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ACTIVIST PRINT HE WAS KICKED

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OUT OF THE SHAREHOLDER MEETING

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LAST YEAR FOR PRESSING THE

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BOARD ON WHAT THEY WERE GOING

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TO DO TO PREVENT THESE KINDS

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OF SCANDALS.

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HE WAS LITERALLY DRAGGED OUT

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OF THAT MEETING.

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HE TOLD US THE WELLS FARGO

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BRING

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BING

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BRIG

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BRING, THAT STAGECOACH

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BRAND IS BEING BURNED TO THE

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GROUND BY THESE ISSUES.

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THE ANNUAL HIGH OF THE STOCK

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WAS $66.31 PRETTY CAN SEE

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RIGHT NOW IT'S 5408.

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THAT'S NOT THE BIGGEST DROP

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AND CERTAINLY NOT A TWO WEEK

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LOW, BUT IF I'M AN INVESTOR

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AND CERTAINLY NOT A TWO WEEK
LOW, BUT IF I'M AN INVESTOR,

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DO I REALLY WANT TO PUT THIS

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IN MY PORTFOLIO RIGHT NOW, OR

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DO I WAIT UNTIL ALL OF THESE

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ISSUES SHAKEOUT QUESTION

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THAT.

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>> THAT'S A GREAT QUESTION.

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WE DON'T KNOW HOW MANY ISSUES

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THERE ARE.

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THERE SEEMS TO BE WEEKLY OR

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MAYBE MONTHLY, AT THE END OF

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THE DAY WHAT WE HAD IS A

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WHOLESALE CHANGE IN THE

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MANAGEMENT TEAM.

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NOW WE HAVE TIM SLOAN RUNNING

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THE SHOP.

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>> IS A GOOD OPERATOR.

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>> IT DOESN'T LOOK LIKE IT TO

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SOME PEOPLE.

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>> OF COURSE IT DOESN'T THESE

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ARE LEGACY ISSUES THAT KEEP

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COMING THROUGH.

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SO WHAT THEY'VE ALREADY

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IMPLEMENTED IS A BROAD RISK

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AND COMPLIANCE SYSTEM THAT'S

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GOING ITS PLACE.

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THESE ISSUES HAPPEN LATE LAST

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YEAR END EARLY LAST YEAR.

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IT SHOWS THE COMPOUND

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COMPLIANCE PROGRAMS ARE

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PICKING THESE THINGS UP

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QUICKER AND CAN RECTIFY IT

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FASTER.

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THEY SAY THEY CAN GET OUT OF

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THIS BY 2019, I THINK THAT'S A

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BIT EARLY.

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2020, MAYBE 21.