http://www.innercitypress.com/sdny166woodswellsfrbicp122821.html
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@cem+1exIKFqp that only works if the company is reporting truthfully. Has the cap been lifted? Why did WF keep saying it will be lifted (sept 2019, spring 2020, fall 2020, etc.). The PR releases were designed to drive investors to the stock. Fed Chair Powell stated once again, in September 2021, that the cap has to stay in place until WF comprehensively fixes its problems. It was smoke and mirrors. The account scandal was finally revealed in 2016. WF was hit with billions of dollars in fines and Stumpf was banned from working in any bank. Most orgs would make meaningful progress. Not Wells. In 2018 the cap was imposed because WF was not making progress. The only real changes since the cap was put in place is that WF has a completely new management team, but processes and controls remain virtually unchanged. CS has stated on investment calls when asked about the cap "We still have a lot of work to do". That's like my kid on Sunday night before returning to school on Monday and I ask him if his Algebra homework is done. Sloan didn't get it done, and CS isn't getting it done. They just issue the press releases to keep the stock inflated. Many investors are in for the long hall, so they see that the momentary uptick for CS and his friends right now means catastrophic results in the future. The house is built on quicksand. Instead of shoring up the foundation, CS is slapping a new can of paint on the outside.
It's going to be an easy case to win. There are plenty of failed audits to demonstrate incompetence. There will be blood.
In related news, WF announced Charlie's interest in laying off some 3000 to cover the legal costs of this upcoming court case. Or, maybe not.
Stock ambulance chasers. If the company isn't doing what you want, you sell the security. That's how the market works.
That's a whole lot of subjective qualifiers. Yikes.
SDNY COURTHOUSE, Dec 28 – Wells Fargo has been sued by shareholders for alleged non-compliance even with the consent ordered it reached with the Federal Reserve System.
On December 28, U.S. District Court for the Southern District of New York Judge Gregory H. Woods held a proceeding. Inner City Press covered it.
The plaintiffs cite Wells Fargo's rosy press releases then complain that "Wells Fargo was for from complying with the regulators' directive, including repeatedly submitting insufficiently developed and inadquate remediation plans, struggling to meet deadlines, and failing to implement meaningful reforms."
Judge Woods instructed the parties on the deadlines which are October 28 for fact discovery and depositions, and February 27, 2023 for motions for summary judgment, if any.
The case is In Re Wells Fargo & Company Securities Ligitation, 20-cv-4494 (Woods)