Wells Fargo Stock Just Hit an All-Time High. Here Are 2 Tailwinds Behind the Banking Giant.

Just seven years ago, Wells Fargo (NYSE: WFC) was embroiled in one of the largest banking controversies in history, still reeling from its phony-accounts scandal and facing an asset cap imposed by the Federal Reserve at the start of 2018. In 2020, the stock price dropped into the low $20s, and the bank also had to cut its dividend by 80%, due to rules imposed by the Fed at the beginning of the COVID-19 pandemic.Today, the stock trades at an all-time high, just below $90 per share. The asset cap has been removed, and banking regulators have terminated numerous other consent orders imposed on the bank following its scandal.CEO Charlie Scharf, who came aboard in 2019, has cleaned up the bank's many regulatory issues and installed a new regulatory infrastructure. He also sold off non-core businesses, significantly cut expenses, and ramped up capital-light businesses, such as investment banking and credit card lending.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool