We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Wells Fargo to Better Meet Regulatory Demands With New Unit
Read MoreHide Full Article
In a bid to rebuild its image, Wells Fargo & Company (WFC - Free Report) has created a strategic execution and operations unit. Through this unit, it seeks to meet demands of several regulators and compliance officers, who remain unsatisfied with the bank's remediation moves after a horde of scandals.
The leadership role of the new unit has been offered to a 21-year veteran of Wells Fargo, Derek Flowers, per an internal memo sent by acting CEO Allen Parker and seen by the Financial Times. Currently, Flowers as chief credit and market risk officer oversees credit risk throughout the bank's lending activities, which has kept him in contact with regulators.
The new unit will focus exclusively on Wells Fargo’s regulatory priorities, i.e., “strengthening and driving the implementation of certain business and risk-management processes”. Also, Parker will be responsible for updating business and risk-management processes frequently.
Post break out of the bogus account scandal in late 2016, Wells Fargo has been involved in a number of probes and continues to encounter problems in its operations. In first-quarter filing, it disclosed to have wrongly charged fees to some customers on account of confusion about the types of transactions counted toward the minimum usage of debit cards that would have waived service fees.
Also, it continues to struggle with asset cap that the Federal Reserve had imposed in February 2018, which is not likely to be lifted anytime soon.
Further, the bank has consistently failed to impress the Fed, the Office of the Comptroller of the Currency and the Consumer Financial Protection Bureau with its remediation plans and other progresses, and has faced public criticism.
With the creation of this new unit, the interim CEO plans to "redouble" Wells Fargo’s initiatives to satisfy and exceed regulatory expectations. Also, it would help instill confidence in the regulators regarding the bank’s efforts to move past previous wrongdoings.
Though Wells Fargo’s cost-control plans and efforts to enhance customers experience seem impressive, the company still has to look out for a CEO, who can be trusted with the responsibility to turnaround the bank.
Shares of Wells Fargo have lost 10.2% over the past six months against 1.2% growth recorded by the industry.
Washington Federal, Inc. (WAFD - Free Report) has witnessed 2% upward estimate revision over the past 30 days. Also, the company’s shares have risen nearly 11% in the past three months. It has a Zacks Rank #2 (Buy) at present.
E*TRADE Financial Corporation estimates have been revised 2.6% upward for current-year earnings over the past 30 days. Also, the company’s shares have risen nearly 7% in the past three months. It carries a Zacks Rank #2.
The Zacks Consensus Estimate for Community Bank System’s (CBU - Free Report) current-year earnings has been revised 1.9% upward over the past 60 days. Also, the company’s shares have risen nearly 5% in the past three months. It currently carries a Zacks Rank of 2.
This Could Be the Fastest Way to Grow Wealth in 2019
Research indicates one sector is poised to deliver a crop of the best-performing stocks you'll find anywhere in the market. Breaking news in this space frequently creates quick double- and triple-digit profit opportunities.
These companies are changing the world – and owning their stocks could transform your portfolio in 2019 and beyond. Recent trades from this sector have generated +98%, +119% and +164% gains in as little as 1 month.
Image: Bigstock
Wells Fargo to Better Meet Regulatory Demands With New Unit
In a bid to rebuild its image, Wells Fargo & Company (WFC - Free Report) has created a strategic execution and operations unit. Through this unit, it seeks to meet demands of several regulators and compliance officers, who remain unsatisfied with the bank's remediation moves after a horde of scandals.
The leadership role of the new unit has been offered to a 21-year veteran of Wells Fargo, Derek Flowers, per an internal memo sent by acting CEO Allen Parker and seen by the Financial Times. Currently, Flowers as chief credit and market risk officer oversees credit risk throughout the bank's lending activities, which has kept him in contact with regulators.
The new unit will focus exclusively on Wells Fargo’s regulatory priorities, i.e., “strengthening and driving the implementation of certain business and risk-management processes”. Also, Parker will be responsible for updating business and risk-management processes frequently.
Post break out of the bogus account scandal in late 2016, Wells Fargo has been involved in a number of probes and continues to encounter problems in its operations. In first-quarter filing, it disclosed to have wrongly charged fees to some customers on account of confusion about the types of transactions counted toward the minimum usage of debit cards that would have waived service fees.
Also, it continues to struggle with asset cap that the Federal Reserve had imposed in February 2018, which is not likely to be lifted anytime soon.
Further, the bank has consistently failed to impress the Fed, the Office of the Comptroller of the Currency and the Consumer Financial Protection Bureau with its remediation plans and other progresses, and has faced public criticism.
With the creation of this new unit, the interim CEO plans to "redouble" Wells Fargo’s initiatives to satisfy and exceed regulatory expectations. Also, it would help instill confidence in the regulators regarding the bank’s efforts to move past previous wrongdoings.
Though Wells Fargo’s cost-control plans and efforts to enhance customers experience seem impressive, the company still has to look out for a CEO, who can be trusted with the responsibility to turnaround the bank.
Shares of Wells Fargo have lost 10.2% over the past six months against 1.2% growth recorded by the industry.
Currently, the stock carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Stocks to Consider
Washington Federal, Inc. (WAFD - Free Report) has witnessed 2% upward estimate revision over the past 30 days. Also, the company’s shares have risen nearly 11% in the past three months. It has a Zacks Rank #2 (Buy) at present.
E*TRADE Financial Corporation estimates have been revised 2.6% upward for current-year earnings over the past 30 days. Also, the company’s shares have risen nearly 7% in the past three months. It carries a Zacks Rank #2.
The Zacks Consensus Estimate for Community Bank System’s (CBU - Free Report) current-year earnings has been revised 1.9% upward over the past 60 days. Also, the company’s shares have risen nearly 5% in the past three months. It currently carries a Zacks Rank of 2.
This Could Be the Fastest Way to Grow Wealth in 2019
Research indicates one sector is poised to deliver a crop of the best-performing stocks you'll find anywhere in the market. Breaking news in this space frequently creates quick double- and triple-digit profit opportunities.
These companies are changing the world – and owning their stocks could transform your portfolio in 2019 and beyond. Recent trades from this sector have generated +98%, +119% and +164% gains in as little as 1 month.
Click here to see these breakthrough stocks now >>