Breaking News

NHTSA Had ‘Ample Information’ to Find GM Ignition Switch Defect: Report
Tweet TWEET

Wells Fargo Reports Trading Losses on 5 Days as VaR Declines

Traders at Wells Fargo & Co. (WFC), the most valuable U.S. bank, recorded five days of losses during the second quarter as the San Francisco-based lender expands its securities business.

The company’s average trading value at risk, which measures the potential maximum loss on any given day, fell to $15 million during the period from $24 million in the first three months of the year, the lender said in a quarterly report to regulators today.

Chief Executive Officer John Stumpf, 59, moved staff into a new Charlotte, North Carolina, trading floor in December and began disclosing the lender’s money-losing trading days for the first time this year. The firm made $331 million in net trading gains in the second quarter, a 26 percent increase from a year earlier, the filing shows.

The bank’s traders made between zero and $15 million on at least 90 days in the first half of the year, according to the filing. Traders made more than $15 million on fewer than 16 days, and more than $25 million on less than four days.

Bank of America Corp. (BAC), based in Charlotte, lost money on seven days during the quarter, including $54 million on one of them, according to a filing. Morgan Stanley (MS) posted losses on 12 days, including one that topped $50 million. Citigroup Inc. doesn’t disclose money-losing days. Morgan Stanley and Citigroup are based in New York.

Goldman Sachs Group Inc. and JPMorgan Chase & Co., both based in New York, haven’t yet released their quarterly securities filings.

To contact the reporter on this story: Dakin Campbell in New York at dcampbell27@bloomberg.net

To contact the editors responsible for this story: David Scheer at dscheer@bloomberg.net; Christine Harper at charper@bloomberg.net

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.