Wells Fargo Reports Trading Losses on 5 Days as VaR DeclinesDakin Campbell
Traders at Wells Fargo & Co., 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., based in Charlotte, lost money on seven days during the quarter, including $54 million on one of them, according to a filing. Morgan Stanley 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.