I thought Well Fargo (WFC) Was Going To Forever Jail

Watch the Video

Transcript:

[00:00:04] Doug McIntyre: Lee, I thought Wells Fargo would be in prison. Forever. So did I I thought that. I thought that Wells Fargo would never stop shooting itself in the foot, that it would go on into eternity. However, I want you to tell me about the good news.

[00:00:22] Lee Jackson: Well, Wells Fargo got tossed into the penalty box seven or eight years ago for just a string of just incredibly bad.

[00:00:33] Lee Jackson: Bad decisions, fake accounts and transferring money in customer’s accounts and into other accounts and duplicating them. And it, it was unbelievable and it was. It probably all came to fruition 20 16, 20 17. and they got put into the penalty box. But good because it limited their total capital they could hold.

[00:00:59] Lee Jackson: Yeah. and that has been released, at least for now. And, I think that the stock has been strong. They were caught. I mean, I’m looking back on some of these, they were caught with some consumer, issues that, that almost seems impossible. That they got away from long as they did.

[00:01:23] Lee Jackson: But now that their capital, the holdings, the total holdings amount is not restricted, they can start to expand the company again.

[00:01:30] Doug McIntyre: Yeah. So to me, I, know the stock’s done well. Okay. And it’s done. Okay.

[00:01:36] Doug McIntyre: But if I’m a long-term investor and I like the current management, if I’m a long-term investor, I’m looking at Wells Fargo as maybe outperforming the other, what you and I used to call money center banks.

[00:01:51] Lee Jackson: Yeah. Big old money centers. That’s what they are. Yeah.

[00:01:54] Doug McIntyre: So. If I’m an investor, I’m looking at Wells Fargo as maybe the best stock in that sector.

[00:02:00] Lee Jackson: Well, yeah. I think a lot of people avoided it for years simply because there was no growth potential. if you can’t, if you can’t raise your whole asset base and grow ’cause you’re capped at whatever it was, 1.9 trillion or whatever it was, there’s no growth there.

[00:02:16] Lee Jackson: And then there’s just the pedestrian sort of earnings from checking and savings account and small banking deals. But yeah, I think now that the, they’re out of the penalty box and compare. All of the stocks have had a pretty good run. But I’ve seen, Warren Buffet sold a ton of Bank of America (NYSE: BAC), still has a fair amount.

[00:02:36] Lee Jackson: Sold all of his Citi group, recently. Yeah, which I thought was interesting. So yeah, I thought, I think looking at Wells Fargo and, I think Buffet owned Wells Fargo for years, back in the day, 10 years ago or so, maybe he’s looking at it again, thinking, okay, well may, maybe they’re not as bad off now as they were 7, 8, 9 years ago, but it’s been a long time coming and you can bet that the, C-suite guys there were high fiving the minute that came down.

The post I thought Well Fargo (WFC) Was Going To Forever Jail appeared first on 24/7 Wall St..