Warren Buffett, one of the richest people in the world renowned for his business acumen and success, reportedly lost $1.4 billion from his net worth as Wells Fargo & Co.’s stock (WFC) dropped 3.3 percent Tuesday, according to Bloomberg.
Buffett’s Berkshire Hathaway (BRKA), the U.S. bank’s biggest shareholder, saw its price slip 2 percent Tuesday as Wells Fargo deals with the fall out of employees creating more than two million fake accounts. The bank was fined a record $185 million by the Consumer Financial Protection Bureau last week and said it fired 5,300 employees related to the evolving scandal.
The scandal and subsequent fallout resulted in a roughly six percent decrease in Wells Fargo’s stock price — a large but not insurmountable amount — but it has been enough for JPMorgan Chase to overtake the title of America’s most valuable bank, according to CNN Money.
The bank stands accused of fostering a work environment that allowed and pushed employees to sign customers up for accounts without their knowledge so as to reach sales goals and score bonuses, a practice that employees reportedly called “sandbagging,” according to Fortune.
According to Bloomberg, Buffett’s net worth fell more than anyone else on its Billionaire’s Index, but he’s still considered the fourth-richest person in the world at $65.8 billion. Buffett, 86, ranked No. 3 on Forbes most recent list of the world’s wealthiest people with $60.8 billion earlier this year.
Still, Buffett and most of the world’s billionaires have experienced a significant decline overall in recent days, and not just from Wells Fargo’s missteps. Bloomberg pointed out that since Friday, there’s been a “global equity sell off” that’s resulted in losses of $93 billion to world’s richest people.
Don't feel too bad for Buffett. So far this year, Berkshire Hathaway is up more than 10 percent. Before Wednesday’s opening bell, the stock is down 4,370, or 1.96 percent, at $219,150.00, but for the year it’s up 10.79 percent.