Wells Fargo & Co (NYSE:WFC) seems to be running with the pack this morning, up only 0.2% an hour into trading. While the big bank seemed to get a boost last week from the not-surprising news that Warren Buffett’s outfit bought up more shares of its biggest holding during the first quarter, the aftereffects may be wearing off.
A look around the sector
Most of the banks are holding their ground this morning, which essentially means following the overall market trends:
- The KBW Bank Index (INDEXDJX:BKX) is up 0.29%.
- Citigroup Inc. (NYSE:C) is also at a 0.29% gain.
- Bank of America Corp (NYSE:BAC) is trending a tiny bit higher at 0.37%.
- JPMorgan Chase & Co. (NYSE:JPM) is the lone wolf with a 0.44% loss this morning.
This week is a big one for housing data, so the banks may have a better chance of gaining as we move toward Friday. So far, there’s been little news to help generate momentum, leaving bank investors to their own devices.
Wells Fargo & Co (NYSE:WFC) had a spat of headlines that weren’t too favorable as we exited last week, but they don’t seem to be on a large enough scale to cause investors any concern.
A judge has ordered the bank to pay $203 million to customers in a case that was filed in 2010 concerning the bank’s manipulation of debit card transactions to incite more overdraft fees. The bank would post transactions in order of highest charge to lowest instead of the order in which the transactions were made, causing many customers to overdraw their accounts. A federal appeals court had thrown out the penalty while hearing the case, but found that the bank was liable for fraud violations and sent it back to U.S. District court, where the judge reinstated the $203 million award for customers. The bank plans to appeal.