Wells Fargo & Co (NYSE:WFC) is currently struggling with winning back the confidence and trust of its investors after it was hit by a scandal last fall.It is quite a tough time especially for the management arm since it not easy to win back the trust of disappointed investors.
Reuters has made public the review of the company. The review has shown Wells Fargo wealth management officials making apologies considering putting in place fee cuts and at the same time showing more responsibility in terms of the way they vet and hire staff.
Wells Fargo had last September reached a settlement with the relevant authorities. Its branch staff had done much havoc to destroy its good name after opening up about 2 million unauthorized customer accounts. These dynamics are shocking especially for a bank that was recognized as one of Best Nasdaq Stocks.
Mr. Ready was very apologetic when giving his statement and he admitted he understood how much the bank had cost its investors in terms of inconvenience. However, he went ahead to give a glimmer of hope to the retirement plan account holders. He assured them that the recent wave did not in any way touch the retirement t plan holders.
What sends out chilling questions at the moment is the deliberate choice by San Diego pension officials to make a statement. Wells Fargo instead feels more comfortable having the dialogue with its investor clients and is sure to strike a reasonable settlement. However, it acknowledges and even feels the concerns of its clients.
At the moment, the bank cannot calculate and determine the magnitude of the impact associated with the scandal. The bank is struggling with striking a balance with the money shifts. Everything cannot be blamed on the scandal anyway considering that even before its eruption there were already some clients pulling out money from the company’s accounts.
Wells Fargo has strongly downplayed the thought among different people regarding data. According to it, the recent underperformance is nothing new! It is just a cyclical phenomenon and should be seen as such. The bank had its reasons behind declining to avail its top executives to comment on the matter. That leaves so much to be speculated on more so where the banks stock will stand in the Nasdaq Stocks.