Wells Fargo and Company (WFC)

[Prudent Capitalist]

Great decision as explained in detail by BRK. Apparently the application to go over 10% ownership in Wells Fargo was brought about by the fact that Wells Fargo was buying back so much stock that BRK was going over the 10% ownership threshold that would result in BRK being declared a bank holding company, subjecting it to very onerous regulations and restrictions, including restricting its right to due business with Wells Fargo. So, after their discussions with the Regulators, BRK decided to pare down its Wells stake and withdraw the application for exemption from the 10%/Holding Company restrictions as a passive investor, rather than move forward and be so restricted. Sound decision, and the reports I have read make it clear it had nothing to do with Wells Fargo or anything tied to its recent issues.