Home Industries Banking Outside the Box GET EMAIL ALERTS Opinion: Wells Fargo auditors could soon deliver another blow to the bank Published: Feb 18, 2018 10:15 a.m. ET
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Investors should watch for KPMG’s opinion on the bank’s internal controls by around March 1
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JEFF JOHANNS Wells Fargo investors have learned a lot about the bank’s worsening issues recently, but they should be watching carefully over the next couple of weeks for possibly more bad news — from the bank’s auditors, KPMG.
KPMG must opine on Wells Fargo’s WFC, -0.12% internal controls by around March 1, and investors might not like the answer: the very real possibility of an adverse opinion from the auditors identifying material weaknesses in the bank’s controls.
On Feb. 2, the Federal Reserve Board released a consent cease-and-desist order that requires the bank to improve its governance and risk-management processes, including strengthening the effectiveness of oversight by its board of directors. The Federal Reserve Board stated that the “firm did not have an effective firm-wide risk management framework in place that covered all key risks.”
That Wells Fargo is in a dark place right now should be a surprise to no one. Recent reporting by The Wall Street Journal, a review of filings with the SEC and other public disclosures have raised significant concerns about material weaknesses in its internal control over financial reporting at the end of 2017.
Submitted February 18, 2018 at 03:55PM by bobbyw24 http://ift.tt/2Gmcfk7
