Wells Fargo Co - WFC STOCK NEWS

Wells Fargo has announced a definitive agreement to sell its Corporate Trust Services (CTS) business to Computershare for $750 million. The transaction, expected to close in the second half of 2021, aligns with Wells Fargo's strategy to focus on core businesses. Wells Fargo’s CTS provides trust and agency services for debt securities and has a strong market presence. Approximately 2,000 CTS employees will transition to Computershare, which is known for its commitment to client service and innovative product development.

Wells Fargo Investment Institute has published a report titled "The New Landscape," examining enduring trends arising from the pandemic and their impacts on consumer behavior and business activities. Key topics include potential shifts in equity leadership, monetary policy coordination, and the emergence of a new commodities bull. The report encourages investors to reassess their asset allocation strategies to leverage growth in a low-rate environment, emphasizing equities while still appreciating the role of bonds in managing volatility. Investors are advised to broaden equity exposure and increase commodity allocations.

Wells Fargo has appointed Reetika Grewal as the new head of Digital for Commercial Banking and Corporate & Investment Banking, starting late April. Reporting to Ather Williams III, she will focus on enhancing digital services and client interactions. Grewal joins from JP Morgan Chase, bringing expertise from her roles in the payments sector. She has received multiple accolades, including the PaymentsSource Most Influential Women in Payments. This hire is part of Wells Fargo's strategic initiative to improve digital experiences across its business segments.

Wells Fargo has committed to achieving net zero greenhouse gas emissions by 2050, including financed emissions. To support this goal, it will disclose emissions data for carbon-intensive portfolios, set interim reduction targets, and finance climate innovation. The bank plans to establish an Institute for Sustainable Finance to direct $500 billion towards sustainable businesses by 2030. CEO Charlie Scharf emphasized the importance of collective action against climate change, highlighting the need for transparency in carbon measurement and client support during the transition.

A new Wells Fargo study reveals that women's roles in family finance are increasing, with 54% of partnered women earning as much as or more than their spouses. 32% of millennial and Gen X women identify as primary breadwinners. The survey also indicates that younger women feel intimidated by financial concepts and lack sufficient financial education, with 39% finding finances daunting. Despite these barriers, 47% express a strong need for financial advice, highlighting the necessity for financial advisors to engage beyond mere numbers.

The Securities and Exchange Commission issued a cease-and-desist order against Wells Fargo for misleading investors from 2012 to 2016 regarding its Community Bank strategy. The bank was penalized $500 million for failing to disclose unlawful sales practices. A Fair Fund was established to compensate affected investors who purchased Wells Fargo stock (WFC) during the recovery period from November 18, 2012, to September 14, 2016. Eligible claimants must meet specific criteria to receive compensation, with claims due by June 25, 2021.

The Wells Fargo Utilities and High Income Fund (ERH) issued a notice detailing the sources of its monthly distributions. It highlights that some distributions may include a return of capital, indicating that part of the capital invested may be paid back to shareholders. Estimates provided indicate that a significant portion of distributions may not reflect true investment performance and should not be confused with yields. Annualized distribution rates are based on the fund's past distributions and may vary depending on market conditions.