Wells Fargo to scale back housing business, Vitamin Shoppe-owner considers going private
Wells Fargo has stated that it will be pulling back on its real estate offering operations while Franchise Group, the parent company of Vitamin Shoppe, is reportedly considering taking its company private.
Video Transcript
DAVE BRIGGS: All right, Seana, what's moving after-hours?
SEANA SMITH: All right, a couple of stock stories that we want to bring for you today. We have Wells Fargo and Franchise Group. Let's kick it off with Wells Fargo. A release here after-hours, Wells Fargo making some adjustments to its mortgage business. They're adjusting the size and also narrowing the focus of that division. This, of course, comes amid the higher rate environment that we are currently in.
Now the bank cutting the size of its servicing portfolio, also focused-- a more focused home lending business. Now they're going to focus on current bank customers and also minority communities. Of course, investors, analysts, are going to want to hear more about this new plan going forward from Wells Fargo when we get there earnings report in just a couple of days. I'm sure there will be a question on that on the earnings call.
Taking a look at the three-month performances, the bank in the green, up just about 2%. Over the past year, though, we are looking at pretty significant losses, with Wells Fargo off about 23%.
Let's take a look at Franchise Group, a headline coming out of the Wall Street Journal. This is the owner of the Vitamin Shoppe, among other retailers here. Reports from the Wall Street Journal that the company is considering going private. How are they going to do that? They're in talks to do this via a management buyout.
Now also in this report, Franchise Group exploring a deal to buy the furniture chain Conn's. We're seeing some movement in Conn's shares after-hours today. But Franchise Group, you can see, in the positive here today, up just about 7/10 of a percent. But over the past year, it has been a rough road here, with the stock off about 43%. Dave.
