The Clap
Wells Fargo’s (NYSE: WFC) profits declined by 31% in Q3 due to fake accounts costs.
The Deets
The bank recorded profits of $3.53 billion for Q3 2022, a decrease YoY from $5.12 billion.
The fake accounts scandal, which took place six years old, has cost the company $2 billion in operating losses, with more expenses expected to be incurred in the coming quarters.
In addition, the bank has increased its loan loss reserve by $784 million, in preparation for an economic slowdown.
Why this Matters
Wells Fargo’s stock is down 12% this year, although it rose around 1.8% during Friday’s session.
