Wells Fargo (NYSE:WFC), BNP Paribas (BNPQY)(FR:BNP), and several other financial services firms have agreed to cough up millions of dollars in fines for using unapproved messaging apps and breaking record-keeping rules. The firms will together pay nearly $555 million in fines, as a Wall Street Journal report highlighted.
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Besides for WFC and BNP, Bank of Montreal (TSE:BMO)(NYSE:BMO), Mizuho Financial Group (NYSE:MFG), Societe Generale (DE:SGE), Wedbush Securities, Houlihan Lokey Capital, SMBC Nikko Securities America, and Moelis & Co. are the firms that have agreed to pay penalties to the regulators, including the SEC (Securities and Exchange Commission) and CFTC (Commodity Futures Trading Commission).
These firms have admitted that their employees used unapproved messaging apps like Meta Platforms (NASDAQ:META) owned WhatsApp and Apple’s (NASDAQ:AAPL) iMessage to discuss business, and they did not maintain these records.
Among the total fines of $555 million, the lion’s share will come from Wells Fargo and BNP Paribas. Wells Fargo has agreed to shell out about $200 million in fines ($125 million to the SEC and $75 million to the CFTC). At the same time, BNP Paribas will cough up $110 million in penalties ($35 million to the SEC and $75 million to the CFTC).
While WFC and BNP continue to face complex regulatory and compliance risks for operating in the banking space, let’s see what analysts recommend about their stocks.
Is Wells Fargo Stock a Good Buy Now?
Wells Fargo’s growing net interest income, expense control, and strong balance sheet augur well for growth. However, the high deposit costs keep analysts cautiously optimistic about WFC stock.
Wells Fargo stock has a Moderate Buy consensus rating on TipRanks based on seven Buy and seven Hold recommendations. Analysts’ average price target of $48.79 implies 9.69% upside potential from current levels.
What is the Price Target for BNP Paribas Stock?
BNP’s diversified business model and well-contained operating expenses bode well for growth. However, the tough macro environment continues to pose challenges.
BNP Paribas stock has five Buy and three Hold recommendations for a Moderate Buy consensus rating on TipRanks. Meanwhile, analysts’ €77 implies 33.31T% upside potential from current levels.
