The only reason to pay attention to Wells Fargo is of all the banks, the stock price has been flat or you have to be thankful for the dividend to receive a return from the company. It seems it has gone from scandal after scandal in abuses of overcharging its customers. According to Aparajita Saxena of Reuters, Wells Fargo will pay about $1 billion in fines related to auto-insurance and mortgage lending abuses. This is on top of their other fee generating schemes (every person has to have 12 fee generating services whether they wanted or needed them or not); steering minority borrowers into the most expensive loans and fees; and other such things.

Wells Fargo as a bank over was considered to be one of the better banks, had an emphasis on small business lending, but needed to cut costs – in the $4 billion area.

Total revenues fell in the quarter 1.4% to $21.92 billion. Total loans were down 1.2% to $947.3 billion.

On some good news, thanks to corporate tax cuts by the President income tax expenses fell 36% to $1.37 billion.

Linking to dividend paying stocks, many people look at the bank and it is still a profitable bank wondering when the bank will have its act cleaned up so the stock price can rise into the 60s from the $50 where it exists. The bank still has many customers who are loyal to it, while it has been hurt by the reputation of their actions. It may take time and eventually the stock should rise. You might want to put it on your list to buy after it reaches the mid 50’s. The key will be the lifting of constraints from the US Federal Reserve.

There are more questions than answers, till the next time – to raising questions.