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Some good and some bad news for Wells Fargo INTL

Some good and some bad news for Wells Fargo 

Wells Fargo, the San Francisco-headquartered bank, is going through the highs and lows with its latest Google-partnered cloud deal on one side, and calls from politicians to break the bank up on the other end.

The company announced yesterday that it’ll be shifting its data from physical storage servers to the public cloud as it moves its digital infrastructure under the hands of Microsoft (MSFT) and Alphabet’s (GOOGL) Google over the next ten years. Ten years might seem too long into the future, though, when the bank’s next one or two years are looking to be shaky thanks to Senator Elizabeth Warren. The Senator pushed the Federal Reserve on Tuesday to break up the bank into smaller, separate companies, citing that its chequered history puts consumers at risk.

You see, in 2016, regulators uncovered that Wells had created millions of bank accounts for people without their consent. However, it’s paid about $4b to date in penalties, and a press release from the company this week said it’s made significant progress in reforming itself.

why it matters

With 66% of companies nowadays using the cloud, the bank’s shift is indicative of a broader trend — both its competitors Morgan Stanley (MS) and Capital One (CF) announced a cloud-first approach over the last year or two. Wells might want to get out of the political spotlight first, though, as Warren’s remarks meant a 0.8% share price drop for it yesterday.