Jeff Cross

Talk Me Down From the Wells Fargo Ledge

You are correct in that WFC is substantially overpiced for the current environment by any rational analysis (just like JPM). However, you do ignore several highly positive factors, particularly the quality of WFC underwriting and the "Buffet Halo" effect. I wouldn't short WFC at the present (if it were legal), but I already sold my JPM and WFC in the recent run up, due to price/risk ratio. I'm only holding a couple of non-US banks and some extremely well capitalized regionals and I'm quite nervous about them. Given a comparable WFC risk adjusted price I'd love to swap, but it's just way too expensive.