I should know

A Dual Strategy to Balance Banking Sector Trade

Your quote: "Knowing other banks will follow suit, JPM has taken a proactive lead to weaken their competitors. BofA and Wells have weaker balance sheets and more pressing needs. Both these companies are undertaking transformative mergers outside of their areas of expertise."

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I would disagree with the above statement. Wells Fargo & Co has a great record for their merger and integration of other banks and financial institutions. When Norwest Bank merged with Wells Fargo, Norwest was the survivor. That merger is considered the best and smoothest major bank merger in history, masterminded by Dick Kovacevich who was CEO of Norwest at the time. He is still onboard and this merger is his baby. I DON’T disagree that with the acquisition of Wachovia, Wells Fargo took on a bunch of stinky loans originated by Great Western; now they are going to have to do something about them. However, I think they have planned a $71 billion write down on these loans. No bank is immune from meltdown in this volatile market, but Wells Fargo is up 12% from this day last year, while at the same time, the Dow is down 27%.