wells fargo stock price

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Wells Fargo Stock Price Has Nowhere to Go but Down

By , Associate Editor, Money Morning • @JimBach22 -

Wells Fargo stock price

In March 2009, when the Wells Fargo stock price traded at $7.21 a share, that was the time to buy.

But right now, Wells Fargo & Co. (NYSE: WFC) is trading at close to $55. From its lows near the tail-end of the recession, to the highs reached just this month, the Wells Fargo stock price is up almost 700%.

This won't happen again. And what's more, there are new pressures arising in the lending game to further hit the Wells Fargo stock price...

Wells Fargo Stock Gets Lift From Earnings

By , Money Morning -

Wells Fargo stock (NYSE: WFC) rose in early trading behind a strong earnings report.

The company reported earnings of $4.6 billion or $0.82 per share. This slightly beat analysts' expectations for earnings of $0.81 per share.

Wells Fargo posted a 17% rise in its profits from $0.70 a year ago, marking the fourth consecutive quarter in which the company has posted rising profits.

Unfortunately for Wells, the earnings report comes at a bad time.

A discriminatory lending scandal was reported yesterday and that is keeping Wells Fargo stock from experiencing better gains than rival JPMorgan Chase (NYSE: JPM) today. The scandal involved Wells discriminating against African-American and Hispanic families who were forced into costlier subprime loans than comparable white families.

"If you were African-American or Latino, you were more likely to be placed in a subprime loan or pay more for your mortgage loan, even though you were qualified and deserved better treatment," Assistant Attorney General Thomas Perez said in prepared remarks Thursday.

Wells Fargo denied the matter and will settle the issue to avoid contested litigation. The San Francisco-based company will pay a total of $175 million: $125 million in compensation to victims of discrimination and $50 million in down-payment assistance to borrowers in affected communities.

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