Warren Buffet is one of the richest personalities in the world. His wealth is largely generated from investments in the stock markets. One of the companies where he has huge shareholding investment is Wells Fargo. Through his company Berkshire Hathaway Inc., Warren Buffet is the largest shareholder of the financial institution. His shareholding in the San Francisco based bank is 9.92%.
His shareholding in the bank has recently been affected by a slump in share value for the bank following recent problems facing the company. The bank has been under investigations for violation of banking regulations. Numerous fake accounts had been created by the bank. Over 3.5 million fake accounts were opened putting the reputation of the bank at risk.
Warren Buffet has commented on the matter a few months after it happened. He said that the bank is yet to deal effectively with the matter of fake accounts which have tainted its reputation as the biggest bank in America. He continued to add that the current CEO Tim Sloan has a huge task of ensuring that the credibility of the bank is restored.
Warren Buffet has insisted on the term of directors being limited to five years. A few of the directors who oversaw the mess at Wells Fargo have been there for many years. To him, directors should be shown that there are consequences for the things they do while in power.
However, Warren Buffet has insisted on one thing: he still has confidence in the current CEO. It shows that the CEO has not tainted his reputation in the eyes of the shareholders yet. Warren Buffet believes that the current leadership is trying to undo the wrongs that were done by previous management and therefore deserve a chance to do that.
Wells Fargo Warren Buffet shareholding suffered a loss of $2.4 billion after the scandal.