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The Markets
by Proactive
Proactive UK has moved.
Coverage of London’s small caps continues on proactiveinvestors.com
Go to Proactive UK
The Markets
by Proactive
Proactive UK has moved.
Small-cap coverage continues on .com
Go to Proactive UK
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The Markets
by Proactive
Proactive UK has moved.
Small-cap coverage continues on .com
Go to Proactive UK

Financial Services

Wells Fargo & Company to swing the cost-cutting axe harder

The bank's costs were high by industry standards, and the fake accounts scandal has made things worse

Under fire bank Wells Fargo & Co (NYSE:WFC) is looking to swing the axe much harder than analysts had been expecting.

The company is targeting an additional US$2bn in cost cuts by the end of 2019 on top of the US$2bn it has already announced (targeted for the end of 2018).

READ Wells Fargo claws back millions more in executive pay over fake accounts scandal

The scandal-ridden bank is looking to repair its reputation after it emerged under-pressure staff had engaged in shady sales practices involving the creation of fake consumer accounts to hit targets.

Wells Fargo said on Thursday at an investor day it would adhere to “industry best practices” at its call centers.

The bank made a US$190mln settlement with regulators to put to bed a scandal that brought down chief executive John Stumpf and led to the firing of several bankers.

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