Warren Buffett’s Berkshire Hathaway on Wednesday said it withdrew its application to the Federal Reserve to boost its ownership stake in Wells Fargoabove 10 percent, and is instead selling 9 million shares to keep it below that threshold.
Berkshire Hathaway (BRK.A, -0.27%) said it concluded after several months of talks with Fed officials that “the commitments that would be required of us” to maintain a higher stake “would materially restrict our commercial activity with Wells Fargo.”
It also said “investment or valuation considerations” were not factors in the sale of the 9 million shares, which it began on Monday and expects to complete by early July.
The bank on Monday said it would claw back an additional $75 million of compensation from the executives it blamed most, former CEO John Stumpf and former community banking chief Carrie Tolstedt.
Despite the scandal, Wells Fargo shares have, like shares of many banks, rallied in recent months, gaining 16.6 percent since Donald Trump was elected U.S. president in November.