Wells Fargo & Company (WFC): People Need To Look Beyond The Surface, Asserts Jim Cramer

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2 days ago

We recently published . Wells Fargo & Company (NYSE:WFC) is one of the stocks Jim Cramer recently discussed.
Banking giant Wells Fargo & Company (NYSE:WFC)'s shares have seen tailwinds recently as regulators removed restrictions on the bank that were levied after an accounting scandal. In his previous remarks, Cramer has discussed the bank and his CEO and expressed optimism about the direction that Wells Fargo & Company (NYSE:WFC) is heading in. He kept up the optimism after the bank's latest earnings report:
'The Wells is really important. Because there are some things that people don't understand. I spoke to Charlie this morning. Charlie Scharf, CEO. The issue with Wells is that they are actually transitioning to a bank that's going to lend a lot more than just look for net interest income. And in order to be able to reposition themselves like that, you're gonna see a drop in NII but they haven't been able to lend the way they would like to, they haven't been able to use capital they would want to. Now did he communicate this well enough? You know Charlie is, Charlie just says listen why don't you just read it and figure it. out. I like Charlie very much but I think people are not gonna do that. They're gonna say, oh, net interest income down, they're not gonna listen what Charlie's really saying which is the bank's back. We are a lending bank, we are a trading bank. We are an investment bank. And we're gonna use the money. We're not gonna just have the money sitting there please Wall Street. I say amen, buy the stock.
A team of bankers in suits, discussing the success of the company's banking products.
'He struggles to say that that the things are stronger. That the people, that it's not weaker at all. I'm glad you mentioned best bank. Remember this guy's in a difficult transition. In the sense that he just got this cap lifted of what he can do. So he's focused on playing offense. Now the street wants defense. The street wants you to sit there and make money on the interest curve. And he's saying, no, we're not gonna do that. We've been waiting for the cap to end. Now we're going to charge. Now let the stock come down if you want to I mean. Stock's been the best performing. But one of the reason why it's been the best performing is Charlie's reinventing Wells into a machine. Now I think people forget that Wells used to be the premier bank with the highest price-to-earnings multiple. It's also the Warren Buffett bank admittedly, and that's no longer the case. But I'm thrilled with what he's doing, it's a very large position for our charitable trust and I just can't wait to buy more.
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Disclosure: None. This article is originally published at Insider Monkey.