August 1, 2017
Wall Street is livid over Wells Fargo’s latest scandal: ‘Here we go again’
Analysts are angry over the latest Wells Fargo scandal where hundreds of thousands of the bank’s customers were overcharged.
Wells Fargo shares fell 2.6 percent Friday after The New York Times first reported the news. The stock closed 1.2 percent higher Monday, meanwhile.
The article cited a 60-page internal report, which revealed more than 800,000 of Wells Fargo’s auto loan customers were charged for car insurance they did not need.
Wells Fargo estimated the mistaken auto insurance sales would cost the bank $80 million in damages. Piper Jaffray said the true cost is likely understated.
“We believe the full cost may be significantly higher and weigh on the risk premium the market will place on shares,” Piper Jaffray analyst Kevin Barker wrote in a note to clients Friday entitled “Here we go again?”