Here’s your Cheat Sheet to this week’s top financial industry business headlines:
Wells Fargo & Company (NYSE:WFC)
On Tuesday, the firm announced a quarterly common stock dividend of $.25 per share, marking a rise of 3 cents, or 14 percent, per share from the third quarter. The dividend is payable March 1st, to stockholders of record on February 1st, as approved by the Wells Fargo board of directors the firm has approximately 5.3 billion shares outstanding.
Wells Fargo has been charged in a lawsuit brought by the German state-owned bank WestLB. Allegations include the mishandling the investments of a collateralized-debt obligations vehicle that was created by the plaintiff which was bailed out and dissolved subsequent to the 2008 financial crisis. A public agency in Germany, Erste Abwicklungsanstalt, formed to take over and wind up WestLB’s assets. House of Europe Funding I, a CDO issuer based in the Cayman Islands, filed a complaint Wednesday in a Manhattan federal court that accuses Wells Fargo, as trustee and collateral administrator, and Collineo Asset Management of “rampant mismanagement” and “flagrant disregard” by investing more of the funds raised by House of Europe Funding I in other CDOs than were permitted.
The United Kingdom’s number-two bank, has begun consultations with 9,000 domestic employees as it gets ready to slash jobs at its investment bank. On Tuesday, the firm sent a memorandum to employees, described by a spokesperson as an “exercise being carried out so that we can start to effect some of the strategic changes.” The results will be announced on February 12th. Chief Executive Antony Jenkins is remaking the culture at the bank and concentrating on more profitable businesses in the face of tougher capital requirements and banking scandals.
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