Wells Fargo apparently doesn't have to answer these questions. It reached a deal to settle the lawsuit that raised them, in exchange for agreeing to submit certain meaningless "corporate governance" measures, which amount to paying the same high-priced consultant it probably would have paid anyway to stipulate that any future acquisitions it makes over the next three years aren't overly risky.
But Wells Fargo's problem doesn't appear to be taking on too much risk.
In fact it may have done everything right in this instance.
Still, it is worth asking: when you buy a bank headed into oblivion that no other institution is capable of buying, why do you need to pay that bank's legal bills?-- Written by Dan Freed in New York. Follow @dan_freed
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV