Wells Fargo shares gain a fourth day on Thursday, four directors to be appointed for sales scandal investigation

December 9, 2016 8:51 am

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According to a person with knowledge on the matter, Stephen Sanger, Wells Fargo Chairman, and Elizabeth Duke, the company’s Vice Chair, have been appointed to a four-member committee, which will be in charge of internal investigation in regard to the bank holding’s recent sales scandal. The person familiar with the matter requested to remain anonymous, as the committee’s complete make-up has not been revealed to the public.

Wells Fargo shares closed higher for a fourth consecutive trading session on Thursday. The stock inched up 0.02% ($0.01) to $57.29, after going up as high as $58.02 a share, or a level not seen since August 5th 2015 ($58.02). Shares have risen 6.92% so far during the current week and 8.26% since the start of December. In the week ended on December 4th the bank holding company added 1.82% to its market value, rebounding after a 0.38% drop in the prior week. November’s 15.02% advance marked the stock’s best performance in at least 6 years.

The source claimed that Enrique Hernandez, the Board of Directors’ Risk Committee Chairman, and Donald James, an official participating in the Board of Directors’s finance and risk committees, will also be included in the special committee.

On September 27th Wells Fargo’s board announced that its human resources committee will cooperate with the Shearman & Sterling law firm on the investigation. Stephen Sanger and Donald James are among the five directors included in the bank’s human resources committee.

Sanger, who has been a former Chief Executive of General Mills Inc., has attended Wells Fargo’s board since 2003. Elizabeth Duke, on the other hand, previously a member of the Federal Reserve Board of Governors, has had a director’s seat since 2015. Both officials recently received a pay raise for the positions they occupy. The Chairman is now paid $250 000 per annum, while the Vice Chair – $100 000 per annum.

In relation with the sales scandal, Wells Fargo laid off 5 300 branch employees, while the bank’s former CEO, John Stumpf, resigned.

A regulatory settlement from September 8th revealed that dubious sales practices at Wells Fargo date back to 2011.

Daily and Weekly Pivot Levels

With the help of the Camarilla calculation method, today’s levels of importance for the Wells Fargo stock are presented as follows:

R1 – $57.41
R2 – $57.53
R3 (Range Resistance – Sell) – $57.65
R4 (Long Breakout) – $58.01
R5 (Breakout Target 1) – $58.43
R6 (Breakout Target 2) – $58.61

S1 – $57.17
S2 – $57.05
S3 (Range Support – Buy) – $56.93
S4 (Short Breakout) – $56.57
S5 (Breakout Target 1) – $56.15
S6 (Breakout Target 2) – $55.97

By using the traditional method of calculation, the weekly levels of importance for Wells Fargo & Company (WFC) are presented as follows:

Central Pivot Point – $53.15
R1 – $54.90
R2 – $56.23
R3 – $57.98
R4 – $59.74

S1 – $51.82
S2 – $50.07
S3 – $48.74
S4 – $47.42

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