Wells Fargo & Co. (NYSE:WFC) executives have said that they are planning to launch wider cost-cutting measures this year as the lender braces for huge loan losses due to the impact of the COVID-19. The company has continued to work in expensive operational and regulatory issues related to a long-running accounts scandal.
Wells Fargo reports first quarterly loss since 2008
This development comes days after the bank reported its first quarterly loss in over a decade. It has also moved to slash dividends to conserve cash following a dismal performance on the Fed’s stress test. Equally, rivals that have released results reported huge loan losses, but according to analysts, Wells Fargo’s problems are deep. Viola Risk Advisor founder and bank analysts David Hendler indicated that there was nothing positive to talk about Wells Fargo. He identified balance sheet exposures and organizational structure problems that cannot be resolved for now.
Wells Fargo stood tall during the 2008/2009 global crisis and was considered the crème de la crème of the banking sector. However, that perception has been upended in recent times following the bank’s involvement in a fake accounts scandal that forced it to settle with regulators. This cost the bank millions and since the bank has failed to shake off the damage. Cost-cutting measures have been a trademark for the company’s executive as they seek to improve profits for investors, but this has been a tall order to achieve.
Wells Fargo bans TikTok from its devices
TikTok continues to receive backlash following growing security concerns, and Wells Fargo is the latest company to ban the app from its devices. The bank’s spokesperson indicated that they had identified some of its employees having company devices that had installed the social media app. The statement added that there are concerns about TikTok’s security and privacy controls and practices, and thus corporate devices should be for official business only. As a result, employees who had installed the app in the devices were asked to remove the app.