Wells Fargo divesting businesses following fake account scandal

Wells Fargo is restructuring itself to make it leaner and more efficient.

The Financial Times has reported citing Wells Fargo’s CFO, John Shrewberry as saying, it will be spinning off a number of its products “worth hundreds of millions of dollars,” so as to focus on “more relevant” ones.

He has however not specified what those products might be.

“There are a handful of businesses in our mindset,” said Shrewsberry, adding that the bank had “choices to make.”

He went on to add, “They’re not at the scale of most of our businesses . . . not top-tier providers.”

Wells Fargo had recently announced that it would be shelling out $142 million in order to settle a class-action lawsuit over its practice of creating fake accounts and credit cards for customers without their knowledge.

As per the Financial Times, the move to shrink the number of its businesses is part of an effort to restore investor confidence.

Currently the bank operates nearly 90 different business and employs 273,000 people.

In recent weeks, Wells Fargo had struck deals to sell its share registration arm to Equiniti for $227 million. The bank is also set to sell its commercial insurance business for an undisclosed sum.

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