Wells Fargo Cuts Dividend, CEO Buys Shares

This looks familiar. Yesterday, Wells Fargo shares took a huge beating and its CEO announced some personal share purchases. That approach to showing confidence has done diddly for every other bank, but there’s still a shot. And today the company followed others, announcing that it would slash its dividend to a nickel, a move that will save it billions per year. Sure, that should share up the balance sheet, but it hasn’t helped any of the companies that have tried it so far.

Right now though, investors like the move and are pushing Wells Fargo shares up about 7%.

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at research.businessinsider.com.au.