Simplicity a boost for Wells Fargo


Notably missing from the list of major banks whose "living wills" were stingingly rebuked by the FDIC and the Fed earlier this week is Wells Fargo (WFC +0.4%), writes the WSJ's David Reilly.

"Size alone doesn't make a firm a [systemic] threat," says Reilly, noting Wells' $1.6T in assets is nearly double that of Goldman Sachs and Morgan Stanley. Wells, however, was not included int he so-called first-wave banks initially having to submit resolution plans because its non-bank assets aren't greater than $250B.

"In banking today," writes Reilly, "simplicity is a virtue, no matter your size."

Previously: Feds reject "living wills" of 11 major lenders

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Comments (6)
  • John Rhodes
    , contributor
    Comments (1339) | Send Message
     
    ...boring is beautiful.

     

    Long: WFC
    8 Aug 2014, 03:21 PM Reply Like
  • db313706
    , contributor
    Comments (223) | Send Message
     
    I'll drink to that.
    8 Aug 2014, 03:22 PM Reply Like
  • MichiganTrader
    , contributor
    Comments (84) | Send Message
     
    I love Wells Fargo. Safe and sound. $65 by the end of next year
    8 Aug 2014, 04:10 PM Reply Like
  • Holdemorfoldem
    , contributor
    Comments (19) | Send Message
     
    Missing the F DIC and said list from the "living will" problem children, is certainly good news.

     

    I too am long and large on the Stagecoach, and have been for 30 years.

     

    Want troubles me is that I have now read negative comments about Wells future, in the near-term anyway, from an analyst who picked up on something I noticed which began at the tail end of June and clearly the beginning of July… That being the much hated "head & shoulders" pattern clearly emerging, and as of now, is complete......below the neckline.
    9 Aug 2014, 01:53 AM Reply Like
  • citizenleung
    , contributor
    Comments (324) | Send Message
     
    By being least smart in exotic financial shenanigans, Wells Fargo is actually the smartest one of all.
    9 Aug 2014, 11:15 AM Reply Like
  • whiff
    , contributor
    Comments (961) | Send Message
     
    Hopefully, it is not a question of how bright they are, but that they consciously eschew involvement in "financial engineering" and "structured products".
    10 Aug 2014, 06:53 PM Reply Like
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