Warren Buffett lost $1.4 billion dollars Tuesday after Wells Fargo stock value fell substantially.
The federal government recently slapped Wells Fargo with a $185 million dollar fine on Sept. 8 for issuing hundreds of thousands of credit cards to customers without their knowledge and opening more than a million bank accounts without their consent. Wells Fargo shares fell 3.3 percent on Tuesday, the Wall Street Journal reports. (RELATED: Wells Fargo Just Got Hit With The Biggest Fine In CFPB History)
The fraud and falling stock value caused Buffett to lose $1.4 billion dollars on Tuesday alone, Bloomberg reports. Buffett’s company, Berkshire Hathaway, is the largest shareholder in Wells Fargo. Berkshire Hathaway’s valuation also fell 2 percent on Tuesday.
Despite the losses, Bufett still has $64.5 billion dollars to his name and is the fourth wealthiest person in world.
The American investor has long expressed his commitment to Wells Fargo and ensured investors about the safety and security of investing in the company, according to Daily Mail. This crisis may cause some in the investment community to become skeptical of America’s second largest banking corporation.
Buffett “is likely going to be very vocal as a board member to change the leadership,” and that “he will want the CEO out of there as fast as possible,” Eric Schiffer, finance expert and CEO of The Patriarch Organization told The Daily Caller News Foundation.
The rapid decline in Wells Fargo stock may come as no surprise to many investors, as massive global stock sell offs knocked $93 billion from the top 400 largest companies since Friday, Bloomberg reports.
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