Sentiment clearly predicted the price moves during the Wells Fargo account opening scandal

Using only Wells Fargo tweets.

Price drop end of Aug following publicization of account opening scandal
Price recovery mid Nov following PR campaign to “fix” issue

Sept 9: Wells Fargo was fined $185 million by various regulators for opening customer accounts without the customers’ permission

Nov 17: Wells Fargo abruptly stopped its questionable sales practices after the scandal, and has taken steps to produce a healthier sales culture. The 5,300 employees who participated in the scandal have been fired, and the bank no longer imposes any product sale requirements on its retail bankers.

Warren Buffett’s (largest WFC shareholder) main reasons for investing in the bank in the first place still apply. Wells Fargo has higher-quality assets and consistently runs a more profitable and efficient operation than its competition.

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