Shares of the company tumbled 8.3 percent to $58.77 at 9:34 a.m. in New York trading, after dropping to as low as $58.05. The stock posted the biggest drop in the 24-company KBW Bank Index, which dipped 1.4 percent as every lender's shares fell in a broad market decline.


The Wells Fargo sanction -- called unprecedented by Fed officials -- arguably marks an apex for central-bank enforcement actions that have been ratcheting up in recent years.

The Fed has at times put a bank's growth in check, such as in 2005 when it told Citigroup Inc. that it was expected to not undertake "significant expansion" until it addressed the issues that gave rise to numerous compliance failures. But before the 2008 financial crisis, the Fed wasn't known for punishing lenders.

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