Wells Fargo will cut jobs by 10% over 3 years

BANKING

Wells Fargo will cut jobs by 10% over 3 years

Wells Fargo plans to cut its workforce by 10% over the next three years, removing tens of thousands of jobs in the third US bank.

Chief Executive Officer Tim Sloan made the announcement to employees on Thursday. The bank employs about 265,000 workers and plans to reduce its number of departures by both attrition and layoffs, Wells Fargo said.

The San Francisco-based bank has seen several scandals since 2015, when it admitted that its employees had opened millions of fake bank accounts for customers to reach unrealistic sales targets. Wells admitted to other scandals, including the sale of auto insurance to borrowers who did not need it and the sale of wealth management products to customers who did not have it. no need.

State and federal regulators have imposed restrictions on Wells
Fargo's activity and fined more than $ 1.2 billion to the bank.

– Associated Press

ECONOMY

Inventories push up household wealth to record levels

The rise in the stock market brought the wealth of US households to $ 106.9 trillion in the April-June quarter, a gain that is concentrated mostly among the wealthiest.

The value of US equity and mutual fund portfolios increased by $ 800 billion last quarter, while the value of homes rose $ 600 billion, the Federal Reserve announced Thursday. Total household wealth is now 2.1% higher than the first quarter, at $ 104.7 trillion.

The Fed's report was released one day as a wave of purchases on Wall Street boosted US stocks, pushing the Dow Jones Industrial Average and the Standard & Poor's 500 to record highs.

Household net worth reflects the value of assets such as homes, bank accounts and inventories minus debts such as mortgages and credit cards. Data are not adjusted for inflation or population growth.

Nor do they reflect the experiences of most American households. Stock market wealth is flowing more and more disproportionately to the wealthiest households. The richest tenth of Americans owns about 84% of the value of stocks.

– Associated Press

HOUSING

Existing home sales unchanged in August

US home sales stagnated in August, but inventories rose for the first time in three years as the real estate market continued to struggle despite the strong economy.

The National Association of Realtors said Thursday that existing home sales were unchanged at a seasonally adjusted annual rate of 5.34 million units last month. This is four consecutive months of monthly decline.

A lack of properties for sale has pushed prices up, putting many potential homeowners out of business. The supply has also been hampered by rising costs of building materials and shortages of land and labor, while rising mortgage rates should slow down demand.

Existing home sales fell 1.5% from the previous year. Sales jumped 7.6% in the Northeast and the Midwest grew 2.4%. Sales dropped 5.9% in the west and 0.4% in the south.

– Reuters

Also in business

Under protection cut its global workforce by 3%, or about 400 jobs, by the end of March. The Baltimore sportswear company announced on Thursday that it now expects restructuring-related expenses of between $ 200 and $ 220 million this year. Previously, it included restructuring charges of between $ 190 million and $ 210 million. Excluding these costs, Under Armor Inc. expects annual profits of 16 to 19 cents per share. His previous outlook was 14 cents to 19 cents per share.

Delta Air Lines said On Thursday, it rolls out facial recognition technology to replace passports and tickets at Atlanta Airport. The optional system will be set up on October 15 at check-in kiosks, baggage counters, security checkpoints and boarding lines for international flights at Terminal F of the United States. Hartsfield-Jackson International Airport in Atlanta. If customers opt for technology in the busiest airport in the world, reducing boarding times and shortening long lines, biometrics will be deployed at other national and international terminals, Gil said. West, General Manager of Delta. The service is optional at the moment.

– News services