Wells Fargo’s scandals are hurting its bottom line

Wells Fargo’s earnings keep getting dinged by a laundry list of scandals.

Profit, loans, deposits and revenue all shrank last quarter, Wells Fargo (WFC) said on Friday.

One thing that is going up is expenses. Wells Fargo said operating losses surged 77% last quarter because of various problems in its auto lending, wealth management, mortgage and currency businesses. Overall expenses rose by 3%.

Meanwhile, Wells Fargo said profit declined by 12% during the second quarter, missing Wall Street’s expectations. The bank’s stock, which has lagged behind the rest of the market, dropped 3% on Friday.

Wells Fargo was also hurt by a $481 million income tax bill linked to a recent Supreme Court ruling that allows states to force online retailers to collect sales taxes.

 

Source: CNN Money

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