Wells Fargo just released a lengthy 10Q revealing a number of concerns for shareholders with regard higher-than-expected legal costs, new auto loan sales 'issues', and the potential for "significantly" more fake accounts based on a wider review. Ironically, WFC's CEO Tim Sloan began his press release thus... "rebuilding trust became our top priority when I became CEO last October."
Headlines from the 10Q (via Bloomberg)
- *WELLS FARGO SEES POSSIBLE LEGAL COSTS BEYOND RESERVES OF $3.3B
- *WELLS FARGO SAYS CFPB INVESTIGATING FREEZING OF CLIENT ACCOUNTS
- *WELLS FARGO TO INCREASE BOGUS ACCOUNTS REVIEW BY 3+ YEARS
- *WELLS FARGO:WIDER EXAM MAY FIND `SIGNIFICANTLY' MORE FAKE ACCTS
- *WELLS FARGO `ANTICIPATES' IDENTIFYING, REMEDIATING AUTO ISSUES
- *WELLS FARGO SAYS AUTO REVIEW MAY INCLUDE ORIGINATION, SERVICING
- *WELLS FARGO:AUTO INSURANCE ISSUE MAY RESULT IN REGULATOR PROBES
- *WELLS FARGO SAYS IT DISCLOSED CLIENT DATA LEAK TO AGENCIES
"We expect that our review of the expanded time periods, which adds over three years to the initial review period of approximately four years (May 2011 to mid-2015), and our review and validation efforts for the initial review period, may lead to a significant increase in the identified number of potentially unauthorized accounts.
However, we do not expect any incremental customer remediation costs as a result of these efforts to have a significant financial impact on the Company."
And the result...