Why Wells Fargo Stock Dropped Today
"Our view of the length and severity of the economic downturn has deteriorated considerably from the assumptions used last quarter, which drove the $8.4 billion addition to our credit loss reserve in the second quarter," CEO Charlie Scharf said in a press release. "We are extremely disappointed in both our second-quarter results and our intent to reduce our dividend," Scharf said. To right the ship, Scharf promised to improve Wells Fargo's operations in the quarters ahead.
