(Bloomberg) -- Steve Eisman is pitching a Wall Street pair: Short scandal-plagued Wells Fargo Inc. and go long on undervalued Citigroup Inc.
“The last person in the world who was actually surprised by the scandals is me. I’ve always felt there was something wrong with Wells Fargo’s culture, for a very, very long time,” Eisman, a money manager at Neuberger Berman Group, said Thursday at the Capitalize for Kids Investors Conference in Toronto. “It’s going to take years to unwind that culture.”
That unwinding will keep the lender from benefiting from the global trends that will bolster Citigroup and the rest of the banking sector, he said.
San Francisco-based Wells Fargo is still facing fallout from customers and politicians over a fake accounts scandal that erupted last year, and also has to cope with legal backlash from mortgage borrowers over improperly charged fees. Other customers say they were hurt by its auto-lending division that billed for unwanted car insurance.
Complete your profile to continue reading and get FREE access to BenefitsPRO, part of your ALM digital membership.
Your access to unlimited BenefitsPRO content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Critical BenefitsPRO information including cutting edge post-reform success strategies, access to educational webcasts and videos, resources from industry leaders, and informative Newsletters.
- Exclusive discounts on ALM, BenefitsPRO magazine and BenefitsPRO.com events
- Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com
Already have an account? Sign In
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
