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Banking   Somewhere close to $9 billion has been erased

Wells Fargo loses world's most valuable bank title

Wells FargoWells Fargo has lost its title as the largest banking institution in the world by market capitalisation, after billions of dollars were wiped off the company's value following its fake account scandal.

Wells Fargo was caught up in a scandal last week as it was found by regulators to have created accounts for unknowing customers in order to meet sales targets.

READ MORE Wells Fargo says litigation could near $1.7bn

Somewhere close to $9 billion has been struck off Wells' market capitalisation since the news of the scandal first came out.

Overnight, shares in Wells Fargo dropped a further 3.3%, taking its market cap to $236bn, falling below JPMorgan Chase for the first time since 2013.

The company said it will take measures to address the fallout from the scandal, after the dismissal of 5,300 employees and a hefty $185m fine.

Investors are unlikely to take the news well, with reports saying that Berkshire Hathaway boss Warren Buffett is set to lose to $2bn as one of the bank's biggest shareholders.

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