Could Buffett Become Wells Fargo's New Director?

Warren Buffett

THIS JUST IN...

According to a story published today by Staff Writer Dan Freed, from Reuters, "several large Wells Fargo & Company investors" are looking for changes in the company's Board of Directors in the wake of a company scandal that cost the chief executive his job.

There are reportedly 15 members on the board. One top investor, Gamco CEO Mario Gabelli, said he would welcome Warren Buffett, Wells Fargo's top investor, becoming its new director. Most of the 100 leading investors at Wells Fargo declined to comment. However, when contacted about this, Buffett reportedly declined to comment. However, in a CNN interview last week, Buffett said he did not sell any Wells Fargo shares because he has long-term faith in the bank.

A key criticism offered by several board members contacted was reportedly that the board was slow to take on and disclose shady sales practices that led to as many as 2 million accounts being opened without customers' permission.

Wells Fargo is the third largest U.S. bank, and lost as much as 12 percent of the company's value since the scandal eroded. The bank's shares are down 2.1 percent this year compared with a 12.1 percent gain for the S&P 500 Banks Index.