Reputational damage exceeds earnings impact
WFC was down over 9% in Monday's trading as the Consent Order from the Fed was digested. While the financial impact is relatively muted at 1.9% of WFC’s 2018 net income according to our estimates, the reputational impact could be more significant, particularly in its investment banking operations. The Consent Order creates further uncertainty for investors at a time when WFC’s peers will be delivering strong growth. Lastly, we still do not believe that WFC is sufficiently inexpensive to recommend buying the stock and continue to prefer C and BAC among its peers.Wells Fargo & Company is a financial and a bank holding company. Through its subsidiaries, the company provides banking, investment and mortgage products and services, as well as consumer and commercial finance. The company provides consumer financial products and services including checking and savings accounts, credit and debit cards, and automobile, student, mortgage and home equity and small business lending, as well as financial planning, private banking, investment management, and fiduciary services. The company also provides financial solutions including commercial loans and lines of credit, letters of credit, asset-based lending, trade financing, treasury management, and investment banking services.
Formed in 2003 by an established team from Cazenove, one of the most respected investment banks in the UK, Atlantic Equities conducts and publishes fundamental, bottom up research on mid and large cap US companies.
Atlantic provide order execution through a wide range of DMA products and algorithmic trading suites.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.