Is Wells Fargo effectively a beneficiary of that old adage that “bad publicity is better than no publicity at all?”
A column by Seeking Alpha posited that the firm will benefit from Donald Trump’s presidency, with a tailwind enjoyed by his domestic spending agenda. The boost in interest rates that would accompany that program would help Wells’ bottom line.
In addition, the column noted, the aftermath of the scandal over sham accounts has been muted. The company has lost some business, including with Bay Area Air Quality Management, and there has been no lasting loss of depositors.
The fine levied against the company, according to the analysis, has cost only 4 percent of the net income in the latest quarter (which, after all, amounted to more than $22 billion).
“It seems that the scandal has somehow convinced the customers that the bank is now purer and cleaner, hence safer. The campaign to clear the mark of shame also seems to be working.”
