During its Tuesday call with analysts to discuss fourth-quarter earnings, Wells announced plans to nix such events in a move aimed at ensuring compliance with the SEC's proposed disclosure rules, according to Joe Morford, a banks analyst at Dain Rauscher in San Francisco, and an East Coast hedge fund manager who requested anonymity. Both listened to the call. In contrast to most other banks, Wells' earnings calls have been closed to the press and the wider public. The SEC, whose proposed rules are in a public comment period set to end in mid-March, wants to make it possible for anyone to listen to these calls. Conference calls are considered extremely valuable because they provide an excellent opportunity for analysts and investors to quiz companies' top managers.
Analysts can ask pointed questions and ferret out important information during conference calls.
The SEC declined to comment. This is a really odd move. The bank probably wants to compensate for the conference call by giving out extra information in the press release, Coker says. I doubt it. Cutting Both Ways Coker says more expansive disclosure helps companies get their message across to investors.