The concept of remote work has proven controversial. Just a few years ago, it was a vital principle that allowed business to continue even in the face of a pandemic. But now, it’s a concept that’s crippling real estate prices and shaking up the entire concept of employment. Wells Fargo (NYSE:WFC), meanwhile, ran into some trouble with this concept after it fired just over a dozen people who they claimed were “faking work.”
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The employees in question worked in the wealth and investment management division and were reportedly engaging in “…simulation of keyboard activity creating the impression of active work.” Wells Fargo noted the allegations in a report filed with the Financial Industry Regulatory Authority.
This was actually a common activity during the pandemic when work-from-home was a necessity; the use of “mouse jigglers” or their keyboard equivalents was common as businesses demanded wide-scale monitoring of their remote workers. Such tools would have produced similar results to those mentioned here.
However, it isn’t exactly clear that the employees involved were even working remotely to begin with. Yet, this cut little ice with Wells Fargo, who declared that it “…does not tolerate unethical behavior,” a stance it’s been working hard to secure ever since the fake customer accounts scandal of 2016.
Great Rent Deal and Some More Legal Trouble
The timing of the firings features some odd coincidences. Even as Wells Fargo tossed out said employees for unethical behavior, Wells Fargo also found itself sued for the misuse of forfeited funds in its 401(k) plan. Plaintiffs claimed that participants’ interests did not come first, though Wells Fargo asserted that IRS guidelines on such matters were followed.
Further, Wells Fargo had to pay $500,000 to a Las Vegas producer for using his name on a company website well after he had left to work for Raymond James. But there was some good news: Wells Fargo managed to score a sweet deal on rent for a branch in New York. Thanks to some clever negotiations in the lease at East 52nd Street, the bank won a 27% drop in rent.
Is Wells Fargo a Buy or Sell?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on WFC stock based on 11 Buys and 12 Holds assigned in the past three months, as indicated by the graphic below. After a 40.36% rally in its share price over the past year, the average WFC price target of $63.56 per share implies 11% upside potential.
