For years now, Wells Fargo (WFC) has been sitting in the penalty box for me. I used to own shares of this company, believing that it was the best in class big bank; however, when its scandal struck in 2016 I quickly unloaded my shares because in general, I’m someone who thinks that there is never just one cockroach in the cupboard and I’m better off being safe than sorry with my investments.
The market has maintained very negative sentiment towards WFC ever since the company’s issues became public. Wells Fargo has been in the news ever since due to congressional oversight and restrictions put on the company by the Federal Reserve. I was surprised back when CEO John Stumpf stepped down as chairman and CEO in response to allegations of misdeeds, that Wells Fargo replaced him with a candidate from within the company. I had already sold my shares at that point, but when that news hit the headlines, I couldn’t help but think that Tim Sloan, his replacement, would be forever tainted and wouldn’t be able to remove the dark cloud that was now hanging over this once illustrious company.