Buffett cuts stake in scandal-hit Wells Fargo

Warren-Buffett-Laughing-700x450.jpg

Berkshire Hathaway has reduced its stake in scandal-hit Wells Fargo ahead of the US bank’s results due Thursday morning.

But Warren Buffett says not to read too much into the transaction, which has been prompted by increased scrutiny from regulators, the Financial Times reports.

Following share buybacks last year, Berkshire’s stake in the bank, which is one of its longest-held companies, moved above 10 per cent.

Wells Fargo was last year found to have fraudulently signed up customers for cards and accounts without their knowledge.

Earlier this week a report placed much of the blame for the sham accounts scandal on top executives.

The bank has pledged to claw back $75m (£60m) in executive pay in response to the report’s findings.