New report: Wells Fargo fund sinking after crisis
Wells Fargo has said it is losing $1.4 billion to $1 billion a day as it struggles with losses that are now bigger than the S&P 500.
The investment firm’s stock fell more than 2% to $43.85 in early trading after a report in The Wall Street Journal said the fund, which provides investment advice and products to financial institutions, had fallen by more than $400 million.
The fund was launched in March 2016, but its performance has been lackluster, with losses in the first quarter of this year surpassing the S.&=P 500 by a margin of nearly $2 billion, according to data compiled by The Associated Press.
In a statement, Wells Fargo said it would work to better manage its exposure to losses and “continue to evaluate our risk management.”
The company has a $35 billion cushion to absorb any losses, the statement said.