The Federal Reserve announced that it is restricting Wells Fargo’s size in response to consumer abuses.
Following the news, five Wall Street investment banks downgraded the shares tanking its price.
Analysts say that investors will have a hard time determining when the restriction will be lifted, resulting in a consistent cloud over the stock price.
While the restriction is rare, it’s a strong sign of regulators’ frustration with the areas where Wells Fargo is falling short.
