Dicey Loans Ambush Wells Fargo's Stock

The earnings drop Wells Fargo announced on Jan. 15 was hardly a disaster--profits declined to $156.7 million from $158.5 million a year ago. But investors hammered the stock down 2 1/2 points, to 49 3/4. The reason for their alarm: an 18% uptick in Wells's problem loan portfolio, as well as concern over accounting changes for $2 billion in real estate loans.

To continue reading this article you must be a Bloomberg Professional Service Subscriber.