New Wells Fargo Public Relations Campaign Blows Up In Their Face As Bank Fraud Scandals Continue To Plague The Bank
A new multi-million dollar Wells Fargo public relations campaign is a bust. The new campaign featuring the slogan, “Established in 1952, reestablished in 2018″ is not installing confidence in the public. Wells Fargo deposit holders and investors continue to flee the bank due to the multiple bank fraud scandals.
The bank has been forced to pay billions of dollars in fines since 2016. The scandals are now having an effect on Wells Fargo’s earnings.
The bank has put forth efforts to move past its fake accounts scandal. However, the bank continued to announce new fines levied against it for yet more bank scandals.
In the first quarter, Wells Fargo confirmed that it was facing a $1 billion fine over its mortgage lending and auto insurance abuses. To no one’s surprise, this fine weighed heavily against the bank’s first-quarter earnings.
And now, the latest earnings report showed these scandals continued to weigh on the bank’s earnings in the second quarter this year.
Wells Fargo reported its revenue slipped further, falling to $21.6 billion. This is down from $21.9 billion in the first quarter and $22.2 billion in the second quarter of 2017.
Wells Fargo management has pointed out that despite its loss in profitability, it did pass its Federal Reserve stress test.
Wells Fargo CEO Tim Sloan told Housingwire:
Wells Fargo also took a hit in their home lending unit. The bank’s mortgage banking income fell considerably from $934 million to $770 million in the first quarter of 2018.
Wells Fargo also took a hit in servicing. The bank’s servicing income fell to $406 million in the second quarter.