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Wells Fargo-3

Sustainable Large Cap Equity Funds Mostly Out of Wells Fargo Stock

Wells Fargo & Company’s (WFC) pervasive and persistent misconduct, starting with the revelations, some as early as 2011, that the bank made a practice of opening millions of unauthorized accounts, exposed the bank’s poor governance and risk management practices. In addition to harming its customers, employees and shareholders in the process, the bank also attracted…

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Continued investment in Wells Fargo stock offers a window into differentiated approach by ESG funds versus conventional funds

Wells Fargo & Company’s (WFC) pervasive and persistent misconduct, starting with the revelations, some as early as 2011, that the bank made a practice of opening millions of unauthorized accounts, exposed the bank’s poor governance and risk management practices. In addition to harming its customers, employees and shareholders in the process, the bank also attracted controversy because of its involvement in the Dakota Access Pipeline (DAPL) project. These developments uncovered weaknesses within the bank’s operations and elevated its risk exposures such that the bank’s governance and social profile suffered.  This is illustrated by the ratings or scores[1] provided by third-party ESG publishers, including such firms as MSCI and Sustainalytics.

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