Wells Fargo & Co. (WFC) materially negatively changed the language on potential regulatory issues in its third-quarter 10-Q filing, according to JPMorgan analyst Vivek Juneja. For the most recent quarter, the bank said it is "likely to experience issues or delays along the way" in satisfying regulators. Past filings contained the phrase "may experience issues or delays" starting in the first quarter of this year. "There were no details on these issues or delays in the 10-Q - the only news this year has been the OCC's consent order and fine from September," Juneja said in a note released Wednesday. "The key risk is that any further issues or delays would increase scrutiny and could further delay the asset cap getting lifted given Fed Governor Powell's comments from late September that Wells Fargo's asset cap will stay until the bank has comprehensively fixed its problems." Powell also said the Fed is very closely monitoring Wells Fargo and would take appropriate actions if Wells fails to meet the Fed's expectations, he said. Meanwhile, Wells Fargo's legal costs not yet accrued for rose by $200 million to $3 billion for the bank's third straight quarter of increases. Wells Fargo shares rose by 0.5% in morning trades.
(END) Dow Jones Newswires
November 03, 2021 09:58 ET (13:58 GMT)
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