According to bloomberg.com, Last week, Wells Fargo reported a $2.55 billion fourth- quarter loss after acquiring Wachovia Corp. and its portfolio of troubled mortgages. Wells Fargo received $25 billion from the U.S. government in October as part of the Troubled Asset Relief Program designed to spur lending and save the financial system.
“The question here is whether Wells Fargo is spending taxpayer money to bankroll Las Vegas junkets,” New York Attorney General Andrew Cuomo said in an e-mailed statement. “That is an answer the American people deserve to know because this is their money.”
Wells Fargo has bolstered lending as its top competitors scaled back. The company added $9.7 billion in loans in the fourth quarter, compared with a combined $86.4 billion decline at JPMorgan Chase & Co., Bank of America Corp. and Citigroup Inc. Wells Fargo said last week that it doesn’t need additional government capital after Citigroup and Bank of America required a second round of bailout funds.
Some smaller banks have opted not to participate in TARP. Community Bank System Inc. in Dewitt, New York and Tulsa, Oklahoma-based BOK Financial Corp. both said in November they had plenty of capital without government support.
Wells Fargo fell 70 cents, or 3.6 percent, to $18.53 at 4 p.m. on the New York Stock Exchange. The shares have tumbled 45 percent in the past year.
The canceling of corporate meetings is adding to the casino industry’s woes. Wynn Resorts, the biggest U.S. casino company by market value, said today that it will cut pay for all salaried employees in Las Vegas and reduce hours for others as the recession drives away consumers. Wynn shares have lost 75 percent of their value in the past year
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Tuesday, February 3, 2009
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