Wells Fargo Penalized by Federal Reserve

Wells Fargo will replace four board members and face limits on growing its banking business after an unprecedented action announced Friday by the U.S. Federal Reserve, which cited “widespread consumer abuses.”

Wells Fargo is Berkshire Hathaway’s (Warren Buffett’s) largest common stock investment.  At Friday’s closing price of $64.07 on the New York Stock Exchange, Berkshire’s 10% stake in the bank was valued at $32 billion.  Berkshire has invested in Wells Fargo since 1989.

Wells Fargo is also Daily Journal’s (Charlie Munger’s) largest common stock investment.

(Note:  This blog post has been published by Value Walk.)