![]() Wells Fargo lost $2.4 billion last quarter, setting the stage for its first dividend cut since the Great Recession Photographer: Andrew Harrer/Bloomberg via Getty Images Andrew Harrer/Bloomberg/Getty Images for Thursday, the Washington Post reported. Mayor Muriel Bowser lifted the curfew in D.C. bank branch in Washington, D.C., U.S., on Thursday, June 4, 2020. JPMorgan’s, on the other hand, dipped only 4%.Ī pedestrian wearing a protective mask walks past a boarded up Wells Fargo & Co. That’s why its net interest income, a key metric of profitability for banks, tumbled 13% quarter-over-quarter. One way to outrun low rates is to simply lend more, as JPMorgan Chase and Citigroupīut Wells Fargo can’t because of the asset cap. Right now, that spread is very narrow, making it challenging to make money. Those unprecedented sanctions prevent Wells Fargo from growing its balance sheet – at a time when growth is absolutely necessary because interest rates are at rock bottom.īanks make money off the spread between interest charged on loans and what is paid out on deposits. ![]() Wells Fargo is getting squeezed by the $2 trillion asset cap imposed by the Fed. Wells Fargo is still in the penalty box with the Fed Wells Fargo’s share price has collapsed by a staggering 54% this year, far worse than the 35% drop for the KBW Bank Index “We are responsible for the position we’re in,” the Wells Fargo CEO told analysts Wednesday after detailing what he called “clearly a very poor quarter for us.” Just ask Charlie Scharf, the man hired last year to get the bank back on track. Today, it’s the first.Īll banks ( except maybe Goldman Sachs) are suffering because of the pandemic, which has caused mass unemployment, surging bankruptcies and a collapse in GDP.īut the fact that Wells Fargo is hurting so much more than its peers is its own fault. ![]() During the Great Recession, Wells Fargo was so strong that it was among the last of the banks to touch its dividend. Wells Fargo is such a mess that it’s being forced to slash its coveted dividend. Goldman Sachs is crushing it as booming markets trump Main Street turmoil Photographer: Jeenah Moon/Bloomberg via Getty Images Jeenah Moon/Bloomberg/Getty Images Goldman Sachs is scheduled to release earnings figures on July 15. headquarters stands in New York, U.S., on Sunday, July 12, 2020. ![]()
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