Wells Fargo CEO aims to calm investors

Wells Fargo & Co. Chief Executive Timothy Sloan worked to reassure investors Tuesday that the Federal Reserve’s unprecedented action capping its assets this month won’t hurt the bank.

The move by the Fed, which also said the San Francisco lender would replace four directors, is unlikely to affect the bank’s annual filing with the Fed for the “stress test,” a review of the bank’s financial health that has become an important post-crisis ritual for banks looking to approve larger stock dividends and share-buyback programs.

Speaking at an investor conference Tuesday, Mr. Sloan said the moves by the Fed and the bank’s response are unlikely to affect its stress-test submission “positively or negatively.” Wells Fargo’s shares rose 0.9% in morning trading, the most among shares of large U.S. banks.

Mr. Sloan also said there “haven’t been any major changes” to the bank since the Fed announced its unprecedented enforcement action on Feb. 2 and Wells Fargo WFC, +2.13%   gave some updates on a hastily arranged conference call.

An expanded version of this report appears at WSJ.com

Popular on WSJ.com

California Employers in a Bind Over Immigration Enforcement

Nevada Regulator, Inundated With Reports About Steve Wynn, Starts Website to Field Tips

Filed in: Top News Tags: 

You might like:

The Ratings Game: PayPal analyst day: Questions about iZettle, capital allocation and eBay The Ratings Game: PayPal analyst day: Questions about iZettle, capital allocation and eBay
The Wall Street Journal: U.S., China near deal that would ease off ZTE ban The Wall Street Journal: U.S., China near deal that would ease off ZTE ban
Asia Markets: Nikkei pulls back from 3-month high as Asian markets dip Asia Markets: Nikkei pulls back from 3-month high as Asian markets dip
The Wall Street Journal: Stacey Cunningham set to become first woman to lead New York Stock Exchange The Wall Street Journal: Stacey Cunningham set to become first woman to lead New York Stock Exchange
WWE shares skyrocket on report of $1 billion deal with Fox WWE shares skyrocket on report of $1 billion deal with Fox
The Wall Street Journal: Sony to buy Mubadala’s stake in EMI Music for about $2.3 billion The Wall Street Journal: Sony to buy Mubadala’s stake in EMI Music for about $2.3 billion
The Wall Street Journal: Adobe bolsters its platform with Magento acquisition The Wall Street Journal: Adobe bolsters its platform with Magento acquisition
There’s a ‘decent probability’ bitcoin goes to zero, says Vanguard economist There’s a ‘decent probability’ bitcoin goes to zero, says Vanguard economist

Leave a Reply

Submit Comment
© 2018 Stock Investors News. All rights reserved. XHTML / CSS Valid.