chris vale

Wells Fargo: Bank of America Redux

I can see why you are frustrated, but it's not as bad as you think. The $4.2 Billion mark up from FSP 157-4 ($2.8 Billion after tax if we are comparing apples to apples) is not booked as earnings and it is not included in Tier 1 Capital (the main capital ratio that regulators use). It is included in the tangible common equity (TCE), and that is why you see such a big jump, up by $4.5 Billion. Without the accounting change TCE would have increased by only $1.7 Billion.