Actionable news
All posts from Actionable news
Actionable news in WFC: WELLS FARGO & CO.,

The Media Weigh In on Wells Fargo Scandal

Jim Cramer is known for his passionate and even bombastic take on stocks.

It’s one of the reasons why the former hedge-fund manager has developed such a wide following of Main Street investors over the past 20 years, as both a TV personality on CNBC and as a founder and columnist of, the investment website.

Cramer may have an elite pedigree, with degrees from Harvard College and Harvard Law School and a successful stint at a hedge fund he co-founded. But he sounds very blue-collar and plain-spoken when he rants and raves about the hundreds of stocks in his mental inventory.

So one might have expected Cramer to be snorting like a feral bull upon learning that Wells Fargo & Co. (ticker: WFC) was being fined roughly $185 million by the federal government arising from an elaborate scheme by thousands of consumer-bank employees to create roughly two million unauthorized accounts for unaware bank customers. Wells said that it has fired more than 5,000 employees in the past five years tied to this scheme, though the bank hasn’t officially admitted wrongdoing.

Instead, Cramer’s reaction was far more measured, delivered in the corporate-speak Cramer is famous for usually avoiding.

“This is a sub-optimal situation with a lot of ill-advised decisions,” Cramer said CNBC’s “Squawk on the Street” last Friday morning.

While Cramer concedes that the situation tarnishes a brand that he thought was “far above” its peers, he told CNBC views that he doesn’t think investors should sell the stock because shares will benefit from a likely interest- rate hike by the Federal Reserve.

The article points out that Cramer’s charitable trust owns...