Wells set to swing the ax

New York Post - - BUSINESS -

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

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