AUS
NZ
UK
CA
USA
IND
Source:solarseven, Shutterstock
Wells Fargo & Company (NYSE:WFC) customers faced online and mobile banking outage on March 17, on the same day when the U.S. government disbursed approximately 90 million payments, valued at more than USD 242 billion, as part of the third round of Economic Impact Payments.
The 2021 American Rescue Plan Act authorized the third round of Economic Impact Payments, which includes a USD 1,400 stimulus check for most people.
The U.S. Department of the Treasury said March 17 the first batch of payments has been disbursed and it is being rolled out in tranches.
Meanwhile, some of the Wells Fargo customers impacted by the outage took to Twitter to raise their concerns while checking for stimulus checks.
The San Francisco -based bank wrote on social media that high volumes led to the issues with online banking in the morning.
Wells Fargo noted that the outage did not affect the stimulus payments which were credited to accounts on the same day.
The company said it is providing the payments on the date the funds are available, based on IRS direction, and it is not holding any funds.
In a follow-up tweet, the company added that it has restored access to all accounts through online and mobile banking.
Most of the payments are been issued by direct deposit and are automatic payments. The treasury mailed roughly 150,000 checks worth approximately USD 442 million in this batch.
Wells Fargo stock up 20% in February
Shares of Wells Fargo, which rallied over 41% in the last one year, soared 20% on the New York Stock Exchange in February.
During the month, Wells Fargo agreed to sell its asset management unit Wells Fargo Asset Management to private equity firms GTCR LLC and Reverence Capital Partners LP for USD 2.1 billion. Wells Fargo will own a 9.9% equity interest and continue to serve as a client and distribution partner.
Meanwhile, Warren Buffett’s Berkshire Hathaway Inc. reportedly offloaded about 58% stake, or 74.95 million shares, in Wells Fargo.
Wells Fargo reports higher Q4 profit, aims to cut USD 8B in 2-3 years
Wells Fargo posted 4% year-over-year growth in its net income to USD 2.99 billion during the fourth quarter ended Jan. 31. Diluted EPS during the period came in at 64 cents, up from 60 cents in the same quarter previous year.
Meanwhile, the financial service company plans to cut costs by over USD 8 billion in the next three to four years.
In 2020, the company’s EPS nosedived to 41 cents from USD 4.05 in 2019. Wells Fargo attributed this drop primarily to USD 11.4 billion increase in credit losses from the COVID-19 impact and USD 1.5 billion restructuring charges.
Wells Fargo’s dividend on common share in 2020 fell 36% year over year to USD 1.22.
Shares of Wells Fargo closed at USD 39.84 on March 17.
