Skip to main content

Fitch: Wells Fargo Should've Pulled A Goldman And Screwed People Over In An Esoteric Fashion

Remember this for next time.
  • Author:
  • Updated:
Think, god damn it! (Getty Images)

Think, god damn it, think! (Getty Images)

It's one thing to engage in massive fraud but to do so in a way that people can actually understand? You f*cked up doubly, Wells.

...why all the vitriol over a scandal that cost the bank fines of just $185 million, a total that practically amounts to a rounding error on an expected $5.5 billion quarterly profit? Fitch analyst Julie Solar summed up the situation in one clear sentence: "While (Wells Fargo) emerged from the financial crisis in a much better position than similarly sized peers, Fitch believes this issue creates reputational risk given the issue and allegations are understandable to the general public, in a way that misdeeds at other banks are not."

Wells Fargo getting smacked by Wall Street analysts [CNBC]


Fitch Has Something To Say About Fudgie

"Manageable" but "raises questions." Fitch Ratings has downgraded JPMorgan Chase & Co.'s (JPM) Long-term Issuer Default Rating (IDR) to 'A+' from 'AA-' and its Short-term IDR to 'F1' from 'F1+'. Fitch has placed all parent and subsidiary long-term ratings on Rating Watch Negative. Fitch has also downgraded JPM's viability rating (VR) to 'a+' from 'aa-' and placed it on Rating Watch Negative. In addition, Fitch affirmed JPM's '1' support rating and 'A' support rating floor. The rating actions follow JPM's disclosure yesterday of a $2 billion trading loss on its synthetic credit positions in its Chief Investment Office (CIO). The positions were intended to hedge JPM's overall credit exposure, particularly during periods of credit stress. Fitch views the size of loss as manageable. That said, the magnitude of the loss and ongoing nature of these positions implies a lack of liquidity. It also raises questions regarding JPM's risk appetite, risk management framework, practices and oversight; all key credit factors. Fitch believes the potential reputational risk and risk governance issues raised at JPM are no longer consistent with an 'AA-' rating. Fitch Cuts JPMorgan Ratings [Reuters]

Getty Images

Nuns Are Pissed At Wells Fargo

You've done it now, Stumpf.