Warren Buffett biggest loser in Wells Fargo debacle

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Wells Fargo’s biggest shareholder, Warren Buffett,
lost about $1.4 billion after the bank’s share price
dropped over three percent on Tuesday.
The stock
fell after it was revealed the bank opened over two
million unauthorized fee-accruing customer
accounts.

The share price of Buffett’s Berkshire Hathaway
slid two percent on the news. The 86-year-old
billionaire investor is the world’s fourth-richest
person with a net worth of $65.8 billion.
Wells Fargo also lost the crown of the world’s
most valuable bank by market capitalization to
JPMorgan after agreeing to scrap sales goals for
retail bankers, effective January 1. The 3.3 percent
sell-off slashed the company’s market value to $
236.9 billion, compared with JPMorgan’s market
cap of $240.3 billion.
The bank was fined $185 million last week after
being accused by the US Consumer Financial
Protection Bureau of creating deposit and credit
card accounts without clients’ approval to boost
sales.
The phantom accounts resulted in some customers
being charged fees for insufficient funds. Wells
Fargo agreed to pay $5 million in compensation to
customers. CEO John Stumpf will testify about the
alleged misconduct.
Wells Fargo said it had fired 5,300 employees
involved in the misconduct.
Chief Financial Officer John Shrewsberry said on
Tuesday Wells Fargo will “take a big wide fresh
look at who knew what and when and what else
might have been done,” adding that it would
impact people “at all levels of the organization

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