Investors in Wells Fargo (WFC) have seen their investment getting decimated in half YTD and on top of that are now facing an unprecedented and shocking 80% dividend cut. Even saying that the bank is having a brutal year is actually an understatement, in my view.
While it is not solely Wells Fargo's fault as to how the year is progressing, the bank is still suffering tremendously from its past accounts scandal, extremely inefficient efficiency ratio, and low-scale capital markets business. The bank navigated the Great Recession in spectacular fashion, but the Great Infection is