Skip to content
Subscriber Only

Wells Fargo Cross-Selling Drama Weighs on Wall Street Profit

  • Regulatory probes threaten to erode the bank’s profitability
  • ‘The fear of the unknown is the biggest issue right now’
Video player cover image

Wells Fargo Sales to Be a Focus of 3Q Results

Updated on

Forget trading. Cross-selling is Wall Street’s new bugaboo.

When Wells Fargo & Co. kicks off U.S. banks’ third-quarter earnings season on Friday, all eyes will be focused on its practice of selling more products to retail customers. Long a source of strength for a company largely insulated from Wall Street’s trading malaise, cross-selling has embroiled the San Francisco-based lender in a scandal involving the creation of as many as 2 million unauthorized accounts. Now, as most banks are expected to report an increase in fixed-income trading, the tables are turned on Wells Fargo.