World Economy

Wells Fargo Faces Losses

Wells Fargo Faces LossesWells Fargo Faces Losses

When Cubic Energy Inc’s bankruptcy plan took effect on March 1, shareholders of the Dallas-based oil and gas company were wiped out. Among the losers was Wells Fargo & Co, Reuters reported. The bank had a nearly 10% stake in Cubic Energy at the end of 2015—worth more than $25 million at the company’s peak—through a private equity-style unit called Wells Fargo Energy Capital. The No. 3 US bank by assets has billions of dollars’ worth of exposure to the struggling energy industry through regular loans that are souring. The whole sector has been devastated by a 60% plunge in oil prices from highs of over $100 a barrel in 2014.