47.00 -0.09 (-0.19%)
Pre-market: 7:15AM EST
|Bid||47.09 x 2200|
|Ask||47.34 x 1400|
|Day's range||46.98 - 47.35|
|52-week range||43.34 - 54.75|
|Beta (5Y monthly)||1.11|
|PE ratio (TTM)||11.63|
|Earnings date||13 Apr 2020|
|Forward dividend & yield||2.04 (4.23%)|
|Ex-dividend date||05 Feb 2020|
|1y target est||50.70|
(Bloomberg) -- In Silicon Valley, entrepreneurs and venture capitalists are making big bets that the future of banking is digital, doesn’t have fees, offers a high savings rate—and might not technically be a bank at all.Chime Inc. is part of a fast-growing class of well-funded financial technology startups offering debit cards, checking accounts and other financial services. And despite not having a banking license, Chime operates enough like a regular bank that Chief Executive Offer Chris Britt, 46, says it’s stealing away customers from companies like Wells Fargo & Co. and JPMorgan Chase & Co. by the millions.Today, Chime has 8 million accounts, the company said, about half of which use the company for direct deposits. That’s still small compared to the biggest banks, but it’s Chime’s growth that’s catching investors’ attention. In 2018, the company had only about 1 million people signed up. “The majority of our members are coming from the big banks,” Britt said.On Wednesday, in a bid to keep up that momentum, Chime plans to announce a new 1.6% interest rate on savings accounts, which compares with most large bank’s rates of well under 1%. Chime had not previously offered interest on savings products, and will partner with existing licensed banks to offer Federal Deposit Insurance Corp. coverage. The offering is the latest in a series of moves Chime is making to broaden its appeal to even more users, including a product that allows overdrafts of up to $100 without penalty, and a multi-year advertising deal with the Dallas Mavericks. Britt says that he is not looking at the new offering as a revenue opportunity, but as a way to bring in new customers. Chime has a reported valuation of $5.8 billion, which makes it one of the 25 largest startups in the U.S., according to research firm CB Insights. But it's one of many companies looking to bring new technology to the banking industry. Globally, digital banks—sometimes also called challenger banks, or neobanks—raised more than $3.7 billion in 96 separate deals in 2019, according to a report from CB Insights released on Wednesday, marking a record-breaking year in terms of both funding and the number of deals.That uptick in funding has followed rapid user growth. Financial technology startups that first launched with checking accounts or credit cards now have more than 54 million accounts all together, the report said.Of course, startups have hit some bumps in the road as many rush to add banking services. Most new digital banks don’t yet turn a profit. That includes Chime, the CEO recently said. Robinhood Markets Inc. ran into regulatory hurdles when it launched a checking-like service in late 2018 without securing deposit insurance (it has since debuted a similar product after partnering with an existing licensed bank). And Chime experienced widespread outages last fall that rendered its website and debit cards inoperable, stranding some customers. “The opportunity is obviously there,” said Conor Witt, a fintech analyst at CB Insights, adding that the savings product could boost customers’ trust. Eventually, “the goal is still to build a standalone challenger bank that becomes a mainstream bank over the course of time,” said Satya Patel, a partner at Homebrew and one of Chime’s first investors.If you’ve seen an ad for Chime on TV, it was likely talking about one of its most popular features: getting your paycheck two days early. In order to use this feature, as well as a few others, users have to set up their paychecks for direct deposit into their Chime accounts, something about about half of its members opt to do. Britt said that’s a key element of the company’s business model, which does not charge monthly fees and generates revenue primarily through interchange fees on debit cards and other transactions. “Once a user signs up for direct deposit,” Britt said, “engagement is off the charts.”While the industry is growing rapidly, there are still risks ahead for rising digital banks. After a certain point, investors worry, growth could become trickier, particularly as competition increases and each additional user gets more expensive to win over. And as some people feel less tied to a single bank, they could become harder to reach with multiple products—for example, a user might choose Chime for a checking account, Robinhood for a brokerage account and Chase for credit cards—undermining financial institutions’ attempts to cross-sell. At Chime, Britt wants to transform the company from an upstart into an “iconic, nationally known brand.” That will mean big sustained growth and even more product announcements in the future. “I think this next chapter for us is going to be a lot about expanding our voice and raising awareness of the brand more broadly in the population,” Britt said, brushing aside competitive fears: “It’s a big market.”(Updates fourth paragraph with Britt’s comment that Chime’s new product is focused on bringing in new customers, not increasing revenue. A previous version corrected Britt’s age. )To contact the author of this story: Julie Verhage in New York at email@example.comTo contact the editor responsible for this story: Anne VanderMey at firstname.lastname@example.org, Mark MilianFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Lender Wells Fargo and the retailer's majority shareholder, MUI Asia Limited, have concluded discussions over Laura Ashley's immediate funding needs, the retailer said on Wednesday, and that it can draw requisite funds from its existing working capital facility with the bank. The announcement comes days after Laura Ashley said that recent movements in its stock and customer deposit levels had led to a reduction in the amount it could draw under the Wells Fargo facility. Wells Fargo provided Laura Ashley with a 20 million pound last year, with the company's assets as collateral.
Restructuring efforts and use of technology to enhance revenues have been the main themes for banks over the last five trading days amid concerns related to impact of Covid-19 virus globally.
Wells Fargo & Company (NYSE: WFC) said today that Chief Financial Officer John Shrewsberry will present at the Credit Suisse 21st Annual Financial Services Forum in Key Biscayne, Florida, on Thursday, February 27, 2020, at 8:40 a.m. ET (5:40 a.m. PT).
Wells Fargo & Company (NYSE: WFC) today announced that, effective immediately, the company will no longer require arbitration for employees in connection with any future sexual harassment claims.
Wells Fargo & Company (NYSE: WFC) today announced that on March 16, 2020, it will redeem 26,720 shares (the "Redeemed Preferred Shares") of its Non-Cumulative Perpetual Class A Preferred Stock, Series T (the "Series T Preferred Stock"). The redemption of the Redeemed Preferred Shares will trigger the redemption of 26,720,000 shares of the related depositary shares (the "Redeemed Depositary Shares"), each representing a 1/1,000th interest in a share of Series T Preferred Stock (the "Series T Depositary Shares"). The Redeemed Depositary Shares will be selected in accordance with the standard procedures of The Depository Trust Company.
Wells Fargo & Company (NYSE: WFC) today announced that on March 16, 2020, it will redeem the remaining 1,802,000 shares (the "Redeemed Shares") of its Fixed-to-Floating Rate Non-Cumulative Perpetual Class A Preferred Stock, Series K (the "Series K Preferred Stock").
Wells Fargo announced today that Mike Weinbach will join the company as CEO of Consumer Lending in early May, reporting to CEO Charlie Scharf and based in New York. Weinbach will have responsibility for Home Lending, Auto, Credit Cards & Merchant Services, and Personal Loans.
The shakeup is aimed at putting a new structure in place as the bank looks to rebuild its reputation and increase accountability, Wells Fargo said in a statement. The new structure, which increases the bank's business lines to five from three, closely resembles that of JPMorgan Chase & Co , where Scharf was mentored by CEO Jamie Dimon earlier in his career.
Wells Fargo & Company (NYSE: WFC) today announced the appointment of several new business leaders and changes designed to create a flatter line of business organizational structure and provide leaders with clear authority, accountability, and responsibility. The new model has five line of business CEOs, each reporting to Wells Fargo CEO Charlie Scharf and represented on the company’s Operating Committee.
Fed Vice Chairman Randal Quarles said he is "optimistic" about the economic outlook despite Coronavirus risks. He also floated possible bank changes to bank rules.
Small business owner optimism softened a bit for their businesses and future expectations in the latest Wells Fargo/Gallup Small Business Index. Respondents also indicated attracting new customers continues to be a key challenge, as many owners share plans of how they will garner more business this year.
(Bloomberg) -- U.S. President Donald Trump used Tuesday’s State of the Union to boast about a booming economy, but the federal deficit under his watch is ballooning -- forcing his Treasury Department to keep debt-sales above the financial crisis-era peak and bring back 20-year bonds.Treasury is rebooting issuance of the 20-year bond as it seeks to lock-in historically low interest rates to help contain taxpayer cost on its growing pile of debt. The budget shortfall is set to swell to $1 trillion annually over the next 10 years as the government spends more money than it takes in to support tax cuts, increase defense outlays and an aging American population.As a result, the agency kept the sizes of debt issuance steady at a record $84 billion for a fifth straight quarter in its quarterly refunding announcement released Wednesday in Washington. That surpasses levels last seen when the nation was digging out of its worst economic crisis since the Great Depression.Treasury Secretary Steven Mnuchin is reviewing ultra-long bonds as one way to contain the cost to service America’s debt pile. Last month he announced plans to issue 20-year bonds as part of that plan.With financing needs projected to rise, Treasury’s advisory committee made up of investors and banks supports the new issue.“A regular and predictable issuance strategy is critical to achieving the lowest cost to the taxpayer over time,“ the group said in its report to Mnuchin on Tuesday, and therefore advised no alterations to debt issued with two years or more.Mike Schumacher, a strategist at Wells Fargo & Co., agrees that it’s best to leave the size of existing coupon auctions steady when the new 20-year bond is added.“We do not think it makes sense to cut coupon auction sizes now, simply to raise them again 6-12 months down the road,” Schumacher and his colleagues said Wednesday in a note.Rising DebtThe Congressional Budget Office projected that the deficit is set to widen to $1 trillion by fiscal year 2020, two years earlier than previously estimated. It could swell even further if Democrats win the presidential election in November, as leading candidates are pitching voters with spending plans that would add billions more.Trump championed the strength of the U.S. economy during his state of the union speech, without drawing attention to the rising debt.“Jobs are booming, incomes are soaring, poverty is plummeting, crime is falling, confidence is surging, and our country is thriving,” the president said. “America’s future is blazing bright.”Trump has previously expressed frustration at the Federal Reserve for not pushing interest rates even lower to boost his economy.20-Year DetailsTreasury said the 20-year bond will follow a similar structure to 10- and 30-year issuance and reiterated it will be debuted in the first half of the year. The department Wednesday set the stage for the 20-year to be rebooted, after it removed from the lineup in 1986, to start in May when it will announce the timing and auction sizes.Twenty-year bonds will, however, be sold in the week following 10- and 30-year auctions, as Treasury Inflation Protected Securities are. The bonds will have a maturity, coupon and dates that align with the 15th of the mid-quarter refunding months -- which are February, May, August and November of each year.The Treasury Borrowing Advisory Committee recommended the department launch the 20-year in May. It also supported dealers’ recommendations that new issue auctions for the bond should be $10 billion to $13 billion in size, with each reopening sized at $8 billion to $11 billion.SOFRThe Treasury signaled plans to issue a request for information on Secured Overnight Financing Rate-linked debt, as the department continues to investigate adding the security to its arsenal to fund the federal deficit. Also called SOFR, it’s the heir presumptive to Libor as a benchmark for dollar rates.The government will sell $38 billion in three-year notes on Feb. 11, $27 billion of 10-year notes on Feb. 12, and $19 billion of 30-year bonds on Feb. 13. The $84 billion in planned sales match the amount sold in each of the last four quarters and will raise new cash of about $13.5 billion.Treasury notes and bonds maintained their declines Wednesday following the refunding announcement. There was little change to the yield curve, with the 5-year to 30-year gap remaining slightly narrower on the day.“In light of seasonal borrowing needs, total bill supply is anticipated to increase modestly over the next several weeks” from the recent peak of $90 billion, Treasury debt managers said in the statement Wednesday. The increase will peak in mid- to late-March and drop in April, the agency said.Cash-management bills “may be a component of our financing strategy over this period,” it said.“Most primary dealers did not expect Treasury to cut other coupon issuance sizes when introducing the 20-year bond,” according to minutes released from the agency’s borrowing committee meeting on Tuesday.The Treasury Department also announced plans to publicly release trading volume statistics next month. The decision follows a years-long review of transparency in bond market. Wednesday’s announcement didn’t mention the on-going review of 50- and 100-year bonds. Mnuchin in January told Bloomberg News that plans to issue ultra-long bonds is “no longer in the near term” as his team focuses on the 20-year bond.(Updates to add strategist comment. A previous version of this story was corrected to indicate a recommendation on issuance size was for reopenings.)\--With assistance from Katia Dmitrieva, Alexandra Harris and Caitlin Webber.To contact the reporters on this story: Saleha Mohsin in Washington at email@example.com;Liz Capo McCormick in New York at firstname.lastname@example.orgTo contact the editors responsible for this story: Benjamin Purvis at email@example.com;Margaret Collins at firstname.lastname@example.orgFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
(Bloomberg) -- Borrowers expect their income or credit history to send their loan costs up or down. Few, however, expect lenders to judge them based on what college they went to.But that’s exactly what some of the nation’s largest banks are doing, a group of former federal regulators said. Companies including Wells Fargo & Co. are charging consumers more to borrow money if they attended less prestigious colleges, a form of educational discrimination that may violate credit laws and deepen inequality, according to a new study.That means Harvard University students, already flush with opportunity, stand to gain an additional edge over their peers at nearby Bunker Hill Community College when taking out loans.The Student Borrower Protection Center, a Washington-based nonprofit, found that Wells Fargo, one of the largest U.S. lenders, offers significantly cheaper loans to borrowers attending four-year colleges than to those at community colleges, while Upstart Network Inc., an online lending platform, charges a graduate from historically black Howard University almost $3,500 more to borrow $30,000 over five years compared with a similar New York University graduate.“Despite assurances by these lenders that their practices lift up consumers from marginalized communities, our analysis shows that educational redlining can further drive disparities and inequality,” Seth Frotman, a former student-loan official at the Consumer Financial Protection Bureau who’s now executive director of the nonprofit, said in a statement. Redlining refers to the now-illegal practice of refusing loans based on where borrowers live.Case StudiesThe group chose Wells Fargo and Upstart as case studies to demonstrate broader issues across the industry. Both lenders disputed the Student Borrower Protection Center’s analysis.“We follow responsible lending practices that take into account expected performance outcomes and are confident that our loan programs conform with fair lending expectations and principles,” Wells Fargo representative Vickee Adams said.Upstart co-founder Paul Gu said his company works closely with the federal consumer bureau, and that Upstart’s statistics show that those who attended Howard University and borrow through his firm are more likely to get credit and at cheaper terms.The findings come as lenders and their regulators in Washington embrace so-called alternative data as a way to cut borrowing costs and increase access to credit for historically under-served households. By using data such as a borrower’s alma mater, the argument goes, lenders can better price household loans than if they relied on traditional factors such as credit scores and personal income.Data AbuseConsumer groups, meanwhile, warn that lenders could abuse the data to overcharge some households. Those fears have been heightened by lenders’ use of algorithms to wade through reams of data to make instant credit decisions, particularly after users of Goldman Sachs Group Inc.’s credit card for Apple Inc. complained late last year that women were given smaller credit lines than their husbands. The New York State Department of Financial Services subsequently opened an investigation.Disparities in credit scores and incomes across races have led to a “really awful system” in which minority borrowers often pay more than they should, Gu said. His firm regularly reports loan application data to the federal consumer bureau under an agreement that allows Upstart to use borrowers’ educational backgrounds in underwriting decisions without fear of a regulatory crackdown, as long as the company continues to meet fair-lending standards.“If you want to make it better, you need more data, and you need different kinds of data to help different kinds of people,” Gu said.Lending DisparitiesUsing educational data could help level the playing field, he said. Howard students, for example, are 46% more likely to get a loan under Upstart’s underwriting model than they would from a traditional lender, and they enjoy interest rates that are 18% lower, Gu said.But disparities remain. White Americans are more likely to have college degrees than blacks and Hispanics, Census Bureau data show, while college dropouts are more likely to fall behind on their student loans than borrowers with degrees, according to U.S. Department of Education figures.Wells Fargo, for instance, quotes loan interest rates for a hypothetical freshman studying engineering at the Borough of Manhattan Community College that are nearly double those offered to a similar student studying the same subject at the City College of New York nearby, a tool on the lender’s website shows. Both are part of the City University of New York system. Community-college students often complete their four-year degrees at other institutions.In 2007, Andrew Cuomo, then New York’s attorney general, warned lenders against using borrowers’ educational backgrounds when making loan decisions. And in 2014, the Federal Deposit Insurance Corp. told Sallie Mae that it couldn’t price loans to students using their college’s loan-default rates without violating the Equal Credit Opportunity Act.To contact the reporters on this story: Shahien Nasiripour in New York at email@example.com;Hannah Levitt in New York at firstname.lastname@example.orgTo contact the editors responsible for this story: Michael J. Moore at email@example.com, Daniel Taub, Steve DicksonFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
The Wells Fargo Utilities and High Income Fund (NYSE American: ERH) released information about the sources of the February 3, 2020, distribution in a Notice provided to shareholders. The full text of the Notice is available below and on the Wells Fargo Asset Management website.
The Wells Fargo Foundation announces that it is providing $17.4 million to Community Development Financial Institutions (CDFIs) across the U.S. to accelerate the growth of diverse small businesses and job creation in local communities. As part of the foundation’s Diverse Community Capital program, Wells Fargo’s grants will fund new efforts to speed access to capital, launch mentoring programs, expand geographic reach, and help sustain more than 50,000 local jobs. Overall, the funding is expected to create an opportunity for more than 30,000 new loans to diverse entrepreneurs.
The Fed is proposing changes to a key post-crisis regulation known as the "Volcker rule" that would expand bank activity in venture capital funding and securitized loan markets.