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%.