Wells Fargo (WFC) Falls On Accounting Worries

Shares of Wells Fargo & Company (NYSE: WFC) are seeing notable pressure today, as we noted earlier. It appears the weakness is related to concerns about what the recent CFO departure says about accounting practices at the company.

Yesterday, Institutional Risk Analytics downgraded Wells Fargo to Negative, who said the CFO departure was related to ongoing internal dispute over disclosure practices.

According to reports from TheStreet.com, in his note analyst Christopher Whalen wrote, "the departure of Atkins, we are led to believe, was not merely the result of personal issues, but reflects an ongoing internal dispute within [Wells Fargo's] executive suite regarding the bank's disclosure."

Whalen also stated, "public behavior suggests significant problems in the bank's internal systems and controls as defined by the Sarbanes-Oxley law. We further understand that some officials of [Wells Fargo], increasingly uncomfortable with the bank's aggressive public disclosure regime, have reached out to regulators because of concerns regarding accounting issues."

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