Wells Fargo’s governance overhang makes it cheap
wells Fargo was once Wall Street’s biggest bank and a favourite of Warren Buffett. He still owns 3% of the company. At its peak, Wells Fargo had a market cap of over $300bn, today that is less than $100bn. The bank traded at a premium to its tangible book value; it was the highest-rated Wall Street bank when using this metric.
A scandal caused the company to lose its premium rating. After the financial crisis of 2008, the bank began to accelerate its cross-selling business. Cross-selling is when the bank uses its access
