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Wells Fargo & Co. (WFC)

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  • Apr. 18, 2013, 9:09 AM
    Wells Fargo (WFC) and Lone Star are in exclusive talks to buy a $6.1B U.K property portfolio from Commerzbank's (CRZBY.PK) Eurohypo unit, reports Reuters, with a deal maybe being struck as soon as May. It may be a sweet deal for the buyers as Commerzbank is selling for what value investors like to call "non-economic" reasons.
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  • Apr. 15, 2013, 12:28 PM
    The Brown/Vitter bill being rolled out in Congress is essentially Armageddon to the TBTF banks, says Goldman, seeing it as mandating another $1.1T in equity for the banking system. Banks would need 12 years of earnings to build this amount organically, though the bill would give just 5 - say goodbye to lending. Break up the banks? BAC, C, JPM, and WFC all have multiple divisions with more than $400M in assets - the level at which the bill gets tough on lenders.
  • Apr. 12, 2013, 11:24 AM
    Wells Fargo (WFC) unveils its "neighborhood bank format," a 1K square foot (vs. traditional 3K-4K) "store" for the digital age - paperless, wireless technology, large-screen ATMs. The initial location is set to be opened in D.C. on Monday. "We'll be able to offer person-to-person service ... in settings that previously would have discouraged us from building a store." (PR)
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  • Apr. 12, 2013, 10:17 AM
    The current environment is not ideal for earnings growth, says Wells Fargo (WFC -1.7%) CEO John Stumpf on the earnings call, touting his bank's diversity of revenue streams. Well, mortgage banking accounted for 26% of noninterest income (presentation) in Q1, and if you listen to Jamie Dimon, there's little business left for the banks to squeeze out of the HARP program. For Wells, mortgage profit of $2.8B in Q1 was off 9% sequentially, off 3% Y/Y.
  • Apr. 12, 2013, 8:15 AM
    More on Wells Fargo (WFC) Q1 earnings: Loan growth of 4.3% Y/Y. Deposit growth of 6.3%. Net interest margin of 3.48%, down 8 bps Q/Q, down 43 bps from last year. $200M (about $0.04 of EPS) released from credit loss reserves. Bank expects continued releases throughout 2013. Mortgage banking income of $2.8B, off 8.9% Y/Y. Tier 1 capital ratio of 10.38%. Book value/share of $28.27. Shares -1.4% premarket. (PR)
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  • Apr. 12, 2013, 8:01 AM
    Wells Fargo (WFC): Q1 EPS of $0.92 beats by $0.03. Revenue of $21.3B misses by $0.29B. (PR)
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  • Apr. 12, 2013, 12:05 AM
    Notable earnings before Friday’s open: JPM, SJR, WFC
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  • Apr. 11, 2013, 6:38 PM
    With no. 1 U.S. mortgage lender Wells Fargo (WFC) set to report Q1 earnings tomorrow and several regional banks reporting in coming days, analysts expect results to take a hit from an expected drop in mortgage revenue. Jefferies estimates banks' revenue from originating mortgages could decline 15%-20% Q/Q; "the magnitude of potential declines could catch some [investors] off-guard."
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  • Apr. 11, 2013, 5:30 PM
    Notable earnings before Friday’s open: JPM, SJR, WFC
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  • Apr. 9, 2013, 11:29 AM
    Banks this Friday will begin making payments to ~4.2M borrowers whose homes were in any stage of foreclosure in 2009-10. The payments, which will range from $300 to $125K, are compensation for the robo-signing scandal when bank employees said foreclosure documents were correct without reviewing them. Part of the settlement: BAC, C, GS, HBC, JPM, MET, MS, PNC, SAN, STI, USB, WFC.
  • Apr. 9, 2013, 9:48 AM
    JPMorgan Chase (JPM) will lead big U.S. banks in job cuts with 17K expected through 2014, according to Bloomberg, after the six largest U.S. banks announced cuts to 1.8%, or 21K positions, during Q1. The housing rebound means many of the cuts will come in foreclosure units. Banks may tell more about their personnel plans starting this Friday when JPM and Wells Fargo (WFC) report Q1 results.
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  • Apr. 7, 2013, 4:19 AM
    A bipartisan Senate bill would force all banks to hold capital of 10% and those with over $400B in assets an extra 5%. The strictest provisions would hit six banks: JPMorgan (JPM), BofA (BAC), Citigroup (C), Wells Fargo (WFC), Goldman Sachs (GS) and Morgan Stanley (MS). Analysts reckon the bill has little chance of becoming law, although its authors reckon support for the measures are growing.
  • Apr. 5, 2013, 12:01 PM
    Wells Fargo (WFC) is likely to face a big drop in mortgage origination revenue this year, says JPMorgan's Vivek Juneja, expecting a decline to just $8B from $12B in 2012. The bank has offsets though, he says, including higher servicing revenues, and lower expenses and putback provisions. The overall impact on the bottom line should be just $334M-$404M. (previous)
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  • Apr. 5, 2013, 11:40 AM
    Avoid the "origination-reliant" bank names ahead of Q1 earnings, says FBR's Paul Miller, as the strong mortgage results from the past few reports will likely weaken. Most at risk: BAC, FITB, FBC, USB, STI, and WFC. That mortgage profits have worsened isn't news, but Miller suggests things have gotten worse than previous muted expectations.
  • Apr. 4, 2013, 3:02 PM
    Wells Fargo (WFC) bulls might want to consider the bank's TARP warrants as a cheap way to lever up, writes Assaf Nathan. Struck at $34.01 and expiring in 2018, the warrants are $3 in the money and sell for $12. Even better, the warrants - both the strike and the share count - are adjusted for distributions, adding more leverage the higher the stock price goes (you don't get this with a typical call option).
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  • Apr. 3, 2013, 2:52 PM
    Wells Fargo (WFC -0.2%) will have to face the music for serving as trustee for three SPVs tied to Medical Capital Holdings Inc. which went out of business in 2009 after the SEC sued it for fraud. A district judge denied WFC's bid to dismiss the charges which center around the bank's alleged failure in stopping Medical Capital Holdings from improperly diverting money. Investors lost as much as $1.08B when Medical Capital's "ponzi scheme" collapsed. 
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Company Description
Wells Fargo & Co is a diversified financial services company. It provides retail, corporate and commercial banking services through banking stores and offices, the internet and other distribution channels to individuals, businesses and institutions.
Sector: Financial
Country: United States