33.37 +0.17 (0.51%)
After hours: 5:24PM EDT
|Bid||33.26 x 1100|
|Ask||33.37 x 1000|
|Day's range||31.10 - 33.91|
|52-week range||25.11 - 54.75|
|Beta (5Y monthly)||1.35|
|PE ratio (TTM)||8.20|
|Earnings date||13 Apr 2020|
|Forward dividend & yield||2.04 (6.74%)|
|Ex-dividend date||05 Feb 2020|
|1y target est||36.95|
(Bloomberg) -- As fresh evidence of the economic toll from the coronavirus pandemic floods in, the Federal Reserve unleashed another round of emergency measures, including a pledge to provide support to risky corners of financial markets that have been some of the hardest hit.The Fed said Thursday it will invest up to $2.3 trillion in loans to aid small and mid-sized businesses and state and local governments as well as fund the purchases of some types of high-yield bonds, collateralized loan obligations and commercial mortgage-backed securities.The money comes on top of the massive stimulus that the Fed had already announced and it thrusts the institution into the sort of speculative lending activities it had shunned in the past -- underscoring the risks that Chairman Jerome Powell is willing to take to shore up the economy.‘Forcefully, Pro-Actively’“We will continue to use these powers forcefully, pro-actively, and aggressively until we are confident that we are solidly on the road to recovery,’ he said in a speech 90 minutes after the details of the measures were announced.Just as the Fed unveiled the measures, a new report from the Labor Department highlighted the economic pain: 6.6 million Americans filed for unemployment benefits in the week ended April 4, bringing the number to 16.8 million in the past three weeks.“Our country’s highest priority must be to address this public health crisis,” Powell said in a statement accompanying details of the new actions. “The Fed’s role is to provide as much relief and stability as we can during this period of constrained economic activity, and our actions today will help ensure that the eventual recovery is as vigorous as possible.”Junk DebtInvestors quickly bid up prices on corporate bonds and stocks after the announcement. High-yield debt was among the biggest gainers, with some of the largest ETFs tracking those bonds surging the most in a decade.But the nature of the Fed’s actions pass the traditional boundaries of the central bank to purchase lower-rated debt and the credit of municipalities, raising questions about its future role.“The Fed has now done virtually everything we think it should be doing and we think it can do,” said Michael Gapen, chief U.S. economist at Barclays Capital in New York.That said, the direct purchase of municipal debt could put the Fed in an uncomfortable political position, he said.“It opens the Fed to political criticism for picking winners and losers,” he said. “They’ve stated many times they’d prefer not to do that, and now they’re doing it.Powell addressed the issue in remarks later Thursday morning during in a webinar hosted by the Brookings Institution.Moral Hazard“Many of the programs we are undertaking to support the flow of credit rely on emergency lending powers that are available only in very unusual circumstances,” he said in his speech. “I would stress that these are lending powers, not spending powers. The Fed is not authorized to grant money to particular beneficiaries.””That does present some moral hazard but a lot will depend on how these programs are executed and how they’re unwound,” said Stephen Stanley, chief economist at Amherst Pierpont Securities. “Are they executed in a way that doesn’t unduly benefit people? If the programs are devised effectively, hopefully that won’t be the case.”The Fed has deployed nearly every tool in its toolbox since March to try and help keep lending flowing in the economy -- as businesses shuttered to stem the spread of the virus. It’s unleashed programs used in the 2008-2009 financial crisis to improve liquidity in the Treasury and credit markets, and reached into unchartered territory to support American businesses, states and local governments.In its latest announcement, the Fed laid out details of the heavily anticipated Main Street Lending Facility, which will deliver funding to companies much bigger than those yet eligible for help. Eligible borrowers can have up to 10,000 employees or up to $2.5 billion in annual revenue. Loan sizes will range from $1 million to $150 million.Borrowers will be subject to restrictions imposed by the $2.2 trillion stimulus package that Congress passed in the CARES Act including on employee retention, distribution of dividends and other factors. The program will be backstopped by $75 billion from the Treasury to absorb losses. Banks that handle the loans will be required to retain a 5% interest in each loan, with the facility purchasing the remainder.Fallen AngelsIn a move that surprised some investors, the central bank will also expand its bond-buying program to include debt that was investment-grade rated as of March 22 but was later downgraded to no lower than BB-, or three levels into high yield. It’ll also buy exchange-traded funds, the preponderance of which will track investment-grade debt along with some that track speculative-grade debt. Together, the programs will support as much as $850 billion in credit.“The reason the Fed had to expand the pool of credit that they are willing to buy is that so many borrowers are slipping into these lower-rated categories,” said Mark Vitner, senior economist at Wells Fargo Securities. “This is aimed more at fallen angels rather that dastardly devils.”The Fed also said it will continue to closely monitor conditions in the primary and secondary markets for municipal securities and will evaluate whether additional measures are needed to support the flow of credit and liquidity to state and local governments.What Bloomberg Economists SayThe Federal Reserve continues to defy the skeptics who questioned whether there was further scope for monetary policy action. The constraints of the zero lower-bound for interest rates may have changed the configuration of additional policy accommodation, but it has clearly not limited the heft of Fed action.\--Yelena Shulyatyeva and Carl Riccadonna, click here for their full noteOther HighlightsThe Municipal Liquidity Facility will offer as much as $500 billion in lending to states and municipalitiesThe Main Street Lending Program will “ensure credit flows to small and mid-sized businesses with the purchase of up to $600 billion in loans.”The expanded Primary and Secondary Market Corporate Credit Facilities and the Term Asset-Backed Securities Loan Facility will support as much as $850 billion in credit.The Fed will starting the Paycheck Protection Program Liquidity Facility, “supplying liquidity to participating financial institutions through term financing backed by PPP loans to small businesses.”(Updates with Bloomberg Economist reaction.)For 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.
Lower rates followed by the coronavirus outbreak and a disappointing fee income are likely to have dampened Wells Fargo's (WFC) performance in the January-March quarter.
The U.S. Federal Reserve said on Wednesday it would "temporarily and narrowly" modify the growth restriction on Wells Fargo & Co's balance sheet, allowing the bank to make more loans under government assistance programs for small businesses hurt by the coronavirus disruption. The change will allow the bank to make additional loans under the $350 billion small business payroll protection program approved by Congress last month and the Fed's forthcoming Main Street Lending Program, and will be in place as long as those facilities are active, the central bank said. The announcement prompted Wells Fargo to announce it was expanding its participation in the small business rescue program after initially restricting its lending capacity at $10 billion due to regulatory requirements despite seeing high demand.
Wells Fargo & Company (NYSE: WFC), as previously announced, will report its first quarter 2020 earnings results on Tuesday, April 14, 2020, at approximately 5 a.m. PT (8 a.m. ET). The results will be available online at https://www.wellsfargo.com/about/investor-relations/quarterly-earnings/.
Wells Fargo senior analyst Mike Mayo says banks will "pass this real stress" and could see double-digit returns again by next year.
Wells Fargo (WFC) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
The change comes as the coronavirus pandemic has put increased pressure on Wells Fargo's balance sheet which has been capped by regulators since 2018. The U.S. Federal Reserve restricted the bank's balance sheet at 2017 levels until it can prove it has the risk management structures which led to the 2016 sales practices scandal. The bank is shunning riskier non-conforming loans with downpayments of less than 20% and home equity lines of credit above $500,000, according to the memo.
The Federal Reserve will backstop the Small Business Administration’s emergency loan program, as lenders continue to work through the Paycheck Protection Program.
Wells Fargo & Company (NYSE: WFC) announced today a change in the location of its 2020 Annual Meeting of Shareholders (the "2020 Annual Meeting"). In the interest of the health and safety of our shareholders, employees, and communities, and in light of further developments regarding the coronavirus or COVID-19 and recent guidance from the Centers for Disease Control and Prevention, the World Health Organization, and federal, state and local public health authorities, the 2020 Annual Meeting now will be held by remote communication in a virtual-only format. Shareholders will not be able to attend the 2020 Annual Meeting in person.
(Bloomberg) -- Wells Fargo & Co. said it can’t fully meet demand from small businesses rushing to participate in a U.S. relief program because of constraints imposed by the Federal Reserve on the bank’s growth.The company has capacity to lend $10 billion to small-business clients under the $349 billion U.S. program, but customers already have expressed more interest than that, Wells Fargo said in a statement late Sunday. The firm will therefore focus on helping nonprofits and businesses with fewer than 50 employees.“While we are actively working to create balance-sheet capacity to lend, we are limited in our ongoing ability to use our strong capital and liquidity position to extend additional credit,” Chief Executive Officer Charlie Scharf said in the statement. “We are committed to helping our customers during these unprecedented and challenging times, but are restricted in our ability to serve as many customers as we would like.”The situation may ratchet up pressure on the Fed to ease the unprecedented asset cap it imposed on the nation’s fourth-largest bank in 2018 in response to mounting scandals at the company. As the coronavirus pandemic began, the firm -- a leading lender to small and midsize U.S. companies, homebuyers and commercial-property investors -- had about $384 billion of additional lending capacity that it can’t unleash because of the cap.As markets swooned and commerce slowed this year, Wells Fargo’s representatives privately broached the idea of at least temporarily lifting the restriction so it could help more customers. The Fed has yet to publicly disclose a decision.People with knowledge of the situation told Bloomberg in late March that the regulator was reluctant to ease or lift the cap because the bank has yet to fully address concerns that prompted the sanction. Scharf, who took over in October, has made progress in enacting reforms, but the company must still prove it’s done enough to prevent abuses of customers, the people said.Friday was the first day that American small businesses hit by the fallout from the coronavirus pandemic could start applying for loans under the new U.S. program. It was part of the $2 trillion stimulus package Congress passed last month aimed at shoring up the economy.Scharf noted in the statement that Wells Fargo already extended almost $70 billion in new and increased commitments and outstanding loans to consumers, small businesses and corporations in the U.S. last month. The firm also said it plans to donate the fees it generates from the small-business stimulus program.Steve Troutner, Wells Fargo’s head of small business, instructed employees to suggest customers apply elsewhere to increase their chances of getting a loan before the stimulus money runs out, according to a memo seen by Bloomberg.“We are hopeful that despite the restrictions of Wells Fargo’s asset cap, our customers will be able to get the help they need, either from us or through other lenders as we all navigate together through this time,” Troutner said in the memo.(Updates with details, contents of internal memo beginning in eighth paragraph.)For 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.
'I am hoping that civility, humanity, empathy and the goal of improving America will break through. We have the resources to emerge from this crisis as a stronger country,' writes Jamie Dimon in his annual letter.
The $350 billion loan program, which launched on Friday, will provide low-interest loans to help small businesses cover payroll and other fixed costs such as rent, mortgages and utilities over the next eight weeks. "While we are actively working to create balance sheet capacity to lend, we are limited in our ongoing ability to use our strong capital and liquidity position to extend additional credit," Chief Executive Charlie Scharf said in a statement. The Federal Reserve in early 2018 ordered Wells Fargo to keep its assets below $1.95 trillion, until it had improved its governance and risk controls following a wave of sales practice scandals.
Wells Fargo & Company (NYSE: WFC) announced today it is targeting to distribute a total of $10 billion to small business customers under the requirements of the PPP and will focus on serving two segments of its customer population: nonprofits and small businesses with fewer than 50 employees. The company has received forms from customers expressing interest in the PPP that it expects will fill the company’s capacity to lend under the program, as it continues to operate under existing asset cap limitations.
Banks were supposed to start processing loan applications on Thursday at midnight from small businesses under the $349 billion Paycheck Protection Program, but they weren't prepared for the onslaught.
Unfortunately for some shareholders, the Wells Fargo (NYSE:WFC) share price has dived 34% in the last thirty days...
The Wells Fargo Utilities and High Income Fund (NYSE American: ERH) released information about the sources of today’s distribution in a Notice provided to shareholders. The full text of the Notice is available below and on the Wells Fargo Asset Management website.
Wells Fargo Innovation Incubator Announces Partner Awards to Support Network of Cleantech Startup Champions.
(Bloomberg) -- Wells Fargo & Co. is a leading lender to small and midsize U.S. companies, home buyers and commercial property investors, and has capacity to unleash about $384 billion of additional loans to customers trying to weather the coronavirus pandemic.But the bank can’t -- because it’s in the regulatory doghouse.The Federal Reserve remains reluctant to ease or lift its 2018 order capping the San Francisco-based lender’s assets because the company has yet to fully address concerns that prompted the unprecedented sanction, according to people with knowledge of the situation. The cap effectively prevents the bank from deploying a mountain of pent-up capital that could back a surge of lending.As the coronavirus pandemic began upending the economy in recent weeks, it quickly emerged that Wells Fargo’s representatives had privately broached the idea of at least temporarily lifting the restriction so it could help more customers. The Fed has yet to publicly disclose its decision.Behind the scenes, Fed officials are skeptical the bank is ready, the people said. Wells Fargo’s new leaders have been making progress but have yet to prove they have made adequate reforms to prevent the consumer abuses that fueled scandals in recent years. And they have confidentially warned the Fed they will miss an April deadline to submit a required plan for improvements.“While we cannot comment on regulatory matters, Wells Fargo is focused on satisfying the requirements of the consent order,” the company said in a statement. “During these challenging times, we are very focused on doing all we can for our clients while operating under the constraints of the asset cap.”Most FirepowerThe Fed’s consent order from February 2018 caps Wells Fargo’s assets at their 2017 level. At the end of last year, the bank was just $24 billion short of that level -- all the room it had to grow unless the ban is rescinded. With credit lines being drawn by companies and deposits flowing in, it may already have gotten there.Wells Fargo executives have made internal adjustments over the years to ensure they can meet customers’ needs. The bank should be able to keep meeting demands from existing clients, but it might be constrained in ramping up lending significantly as new ones seek help, one of the people said.The appeal puts the Fed in a difficult spot -- conflicted between its role as a tough regulator of financial giants and its current efforts as a central bank trying to ensure ample cash for the struggling economy. The Fed has encouraged the biggest lenders to use their excess capital and dip into additional buffers to expand lending during the pandemic.Bloomberg calculated Wells Fargo’s capacity for additional lending based on its capital at the end of 2019. Together, the nation’s eight banking titans had enough then to ramp up lending by $1.6 trillion. But ironically, the firm with the most firepower among them can’t proceed.It would be tricky to lift the ban temporarily, because it would entail setting a time line for undoing any growth. It’s one thing to prevent a balance sheet from expanding, quite another to shrink it significantly after making hundreds of billions of dollars in ongoing loans.Chief Executive Officer Charlie Scharf took over in October after two previous CEOs frustrated regulators and politicians who accused the bank of failing to act quickly enough to fix problems. Unlike his predecessors, both longtime Wells Fargo veterans, Scharf is an outsider, and he’s been developing plans to more radically overhaul the company. At a congressional hearing this year, he acknowledged there’s much left to do.The bank’s representatives didn’t try pressing a case to the Fed that Scharf’s work on reforms is done, the people said. Rather, they noted the scope of the emergency facing the country and the bank’s willingness to help. Without the cap, Wells Fargo would be able to arrange significantly more financing for consumers, local businesses, large corporations and municipalities.Wells Fargo has been in Washington’s crosshairs since a variety of scandals emerged following the 2016 revelation that employees had opened millions of potentially fake accounts to meet sales goals. Lawmakers on both sides of the aisle have expressed deep frustration with the bank, with some signaling the Fed would face a backlash if it’s lifted. But there’s a chance that the virus’s impact on the economy might shift the political landscape.On Saturday, Maxine Waters, who chairs the House Financial Services Committee, asked Fed Chair Jerome Powell for information on Wells Fargo’s request and what the regulator makes of it. She wants his staff to provide a briefing to the committee in coming days on its supervision of the bank.Desperate CompaniesCompanies eager for cash have drawn down credit lines and arranged new facilities, obtaining at least $177 billion in financing since March 9, when Bloomberg News began tracking the data. Behind the scenes, bankers have sought to persuade corporate clients that they don’t need to tap cash preemptively -- often for reasons that have less to do with liquidity than profitability. That suggests that even if Wells Fargo’s cap were lifted, it may not rush to deploy all of the money.While lending boosts the asset side of banks’ balance sheets, investors fleeing capital markets have generated a flood of deposits, increasing the liability side. By March 18, the 25 largest commercial banks had collectively gained $420 billion of deposits this year, according to Fed data.Wells Fargo had 9.6% of the market share for U.S. deposits in 2019, according to Federal Deposit Insurance Corp. data. If it maintained that share, the influx would amount to about $40 billion, potentially pushing the bank above its 2017 asset cap.For 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 Income Opportunities Fund (NYSE American: EAD), the Wells Fargo Multi-Sector Income Fund (NYSE American: ERC), and the Wells Fargo Utilities and High Income Fund (NYSE American: ERH) have each announced a distribution.
Can you wash money that you think has been contaminated with coronavirus? Should you? How can you deposit or withdraw money right now?