Wells set to swing the ax
Wells Fargo is poised to eliminate a number of its smaller businesses as it continues to smart from its fake-accounts scandal.
The stage coach-brand bank will be spinning off a number of its products “worth hundreds of millions of dollars,” Chief Financial Officer John Shrewsberry told the Financial Times, in order to focus on and emphasize “more relevant” ones, though he did not specify what prod- ucts those would be, nor what businesses are in the crosshairs.
Wells Fargo recently announced it would pay $142 million to settle a class-action lawsuit over its practice of creating fake accounts and credit cards for customers without their knowledge.
Separately, the bank is leading a group of lenders that are trying to take control of a $2 billion privateequity fund that borrowed heavily to buy oil and gas wells before energy prices plunged and is now worth essentially nothing.
EnerVest, a Houston buyout firm that focuses on energy investments, manages the fund. The firm raised and started investing money in 2013, when oil was trading at more than double the current price. But the fund added $1.3 billion of borrowed money to boost its buying power. That later caused it trouble when oil prices tumbled. Post wires