Wells Fargo CEO aims to calm investors
Wells Fargo & Co. Chief Executive Timothy Sloan worked to reassure investors Tuesday that the Federal Reserve’s unprecedented action capping its assets this month won’t hurt the bank.
The move by the Fed, which also said the San Francisco lender would replace four directors, is unlikely to affect the bank’s annual filing with the Fed for the “stress test,” a review of the bank’s financial health that has become an important post-crisis ritual for banks looking to approve larger stock dividends and share-buyback programs.
Speaking at an investor conference Tuesday, Mr. Sloan said the moves by the Fed and the bank’s response are unlikely to affect its stress-test submission “positively or negatively.” Wells Fargo’s shares rose 0.9% in morning trading, the most among shares of large U.S. banks.
Mr. Sloan also said there “haven’t been any major changes” to the bank since the Fed announced its unprecedented enforcement action on Feb. 2 and Wells Fargo WFC, +2.06% gave some updates on a hastily arranged conference call.
An expanded version of this report appears at WSJ.com
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