Wells Fargo, a stock beloved by Warren Buffett (Trades, Portfolio), became his only holding besides Sanofi (NYSE:SNY) to fall to its 52-week low price Wednesday after it reported fraud involving fake accounts in its commercial banking. Rare pricing windows on Buffett stocks usually drawn investors, but the impact of the scam at Wells Fargo may obscure Wells Fargo's attractiveness.
According to the Consumer Financial Protection Bureau, Wells Fargo illegally opened more than 2 million unauthorized deposits and credit card accounts, spurred by sales targets and compensation incentives. The bureau has already slapped a $185 million fine, its highest ever, on the bank. Continue Reading »