Wells Fargo News: Even as the biggest US banks faced the heat due to the closure of California’s Silicon Valley Bank, customers of major bank Wells Fargo reported facing issues in their online bank accounts. This news comes amid fears of liquidity issues stemming out of Silicon Valley Bank crisis spreading to other banks. The bank clarified that the issue was related to a technical glitch and that funds were safe. It appears that the issue is caused due to difficulty in updating bank accounts data.
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While the markets were on one side pricing in the effect of potentially higher interest rate in the upcoming FOMC meeting, the news of Silicon Valley Bank facing liquidity issues led to a decline in US stocks on Thursday. With the news of the bank’s seizure and the threat of tech companies facing payroll related issues triggered more FUD in the markets. The S&P 500 Index is down by 1% on Friday while the Nasdaq Composite Index is down by 1.42%.
Wells Fargo Online Bank Issue
The technical issue led to missing records of deposits and scheduled payments. An official communication from the bank said, “If you see incorrect balances or missing transactions, this may be due to a technical issues and we apologize. Your accounts continue to be secure and we’re working quickly on a resolution. The Wells Fargo stock price, up by 0.30%, appears to be unimpacted by this issue.
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