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We're gonna take stock of Wells Fargo. It has been a bad month for Wells Fargo shareholders and for the bank, the bank agreeing to pay in order to settle allegations related to fraudulent accounts being opened, and also the appearance before two sets of regulators in Washington of John Stump, the company's chief executive. We're gonna have more on Wells Fargo. Find out maybe Wells Fargo stock is on sale right now, though, Let's go to Catherine Cowdy in the Bloomberg news room
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three And that's a Bloomberg business flash. You're listening to taking stock with Kathleen and Pim Fox on Bloomberg Radio. The shares of Wells Fargo, they are up about two tenths of a percent right now forty dollars and forty nine cents. But earlier in the year this was a fifty four dollar a share stock and would know that
Wells Fargo has not had the best of months. The chief executive John Stump peering before two sets of regulators in Washington this week to speak about allegations and efforts on the part of investigators to learn more about accounts that were open for people that for all intensive purposes did not exist. Here to tell us more. Peter Anderson he his chief investment officer, a fiduciary trust company. Peter,
always a pleasure, Thanks for joining me. You're welcome. Now let's separate what is going on at Wells Fargo in terms of investigations and the chief executives performance and role in future and the actual bank because that may help us guide, you know, the guide the conversation about what the stock is actually worth exactly, and you know, I
think they're in line with problem him Uh. This past week there has been a lot of focus on the CEO's activities and appearing before two agencies to discuss this. And while we don't want to understate the damage of the scandal, I think a lot of focus has been lost on the value of the stock and going forward, what the plans will be to recover uh investor confidence.
And we're waiting. A lot of investors are waiting on the sidelines, kind of in a holding pattern, to get a sense of what the board of directors, for instance, what they're thinking and what they might uh possibly propose as a solution. There has been uh, they've been silent on the issue so far. And you're a shareholder, Yes, we are. We have a long term shareholder and uh,
we have a lot of confidence and faith in the company. However, this period of I would say lack of disclosure is somewhat of concern because we think we need more information, as any stock analysts would to get a sense of what the future cash flows are in factoring in what their proposed solutions would be to the scandal. Well, let me just play you a clip of Elizabeth Warren, senator from Massachusetts, speaking on the panel. They were questioning the
chief executive John Stump of of Wells Fargo. Just listen to what she had to say. You should resign, You should give back the money that you took while this scam was going on, and you should be criminally investigated by both the Department of Justice and the Securities in Exchange Commission. Harsh words from Senator Elizabeth Warren. Uh, Peter Anderson, this has got to affect the brand? Or am I wrong? Well? You know, I think what it should affect is the
board of directors. You know, their duty bound to respond to this and UM. While the CEO certainly is in the center of this firestorm right now, at least in the public eye. You know, as an analyst, I would say that you need to know what the the highest leadership is thinking, which is higher than the CEO. Right is that? But he's also the chairman, right, I mean John Stump is also the chairman and chief executive. He is.
And you know a lot of government experts have been saying for years that you should always separate those two authorities because of situations like this. But there are independent directors that certainly our duty bound to come forward and mentioned. Not only what I would say is disclosed and proposed, So disclose what's happened. And I well, John, I give you an example. John Chen, the chief executive of BlackBerry is on the board, yes, of Wells Fargo. Have you
received any information from them? Have they given you any indication about anything uh? Publicly the board? As far as I know, the only uh disclosure they've given was the notice about clawback UH for the the two very highlighted individuals right now, the CEO and the other person. But
other than that, we do not have anything official. So for instance, let me give you An example him that might help investors modeled future cash flows is if the board were to have an investor conference call and disclose and propose what they are thinking in terms of fixing this going forward. I think that would give more clarity to the situation. You know, as investors, most analysts are looking to companies for guidance rights for things as basic
as earnings. So this I put this kind of in the same category, only even uh more highly ranked in the sense that if they can give us information and how they might fix this, there would be clarity and we could go forward with our analysis. And Peter Anderson, I just wanna offer a little bit up of your resume, uh Harvard, Yale, Northeastern Physics. Maybe the physics will come
in handy with this with this particular situation. And also previously the head of multi asset wealth management at Congress Wealth Management. Um, is there a click a time a time frame here? I know we're on a time clock, give you about ten seconds. Is there a time clock for the board of directors? Well, time is their enemies of him, and as I would urge them to quickly propose a solution and then we can get back to our Bloomberg terminals and do the analysis. I want to
thank you very much for joining me. Peter Anderson is the chief investment officer at Fiduciary Trust Company. They're based in Boston, home to Bloomberg, shairs of Microsoft. I mean, beg your pardon. Shares of Wells Fargo are up a quarter of our percent. Right now, you're listening to taking Stop. This is bloom Blog coming up on taking stock. We're going to take stock of the election and what would happen if there's a big post election market move. Which way would it go? That's next