Oct 14 Wells Fargo & Co reported its
fourth straight fall in quarterly profit as it set aside funds
for potential legal costs amid an increasingly politicized
bogus-account scandal that cost Chief Executive and Chairman
John Stumpf his job.
The bank, which faces numerous federal and state
investigations into its practices, said noninterest expenses
rose due in part to higher litigation accruals and salaries.
Net income applicable to shareholders fell 3.7 percent to
$5.24 billion, or $1.03 per share, from $5.44 billion, or $1.05
per share, a year earlier.
Analysts on average had expected the No. 3 U.S. bank by
assets to report earnings of $1.01 per share, according to
Thomson Reuters I/B/E/S. It was not immediately clear if the
figures reported on Friday were comparable.
Stock analysts have cut profit forecasts for the bank for
quarters to come following the revelation that bank employees
had opened as many as 2 million accounts without customers'
knowledge or permission to meet aggressive sales targets.
San Francisco-based Wells Fargo has already agreed to pay
$185 million to settle regulatory charges and fired about 5,300
employees in connection with the scandal.
Several big customers, including California and Illinois,
have also suspended business relations with the bank.
The scandal is a rare setback for the bank, which emerged
from the financial crisis relatively unscathed.
(Reporting by Nikhil Subba and Richa Naidu in Bengaluru;
Editing by Ted Kerr)