Latest news with #WFC
Yahoo
2 days ago
- Business
- Yahoo
Wells Fargo's asset cap lifted by the Fed: What this means
The Federal Reserve has lifted its asset cap on major bank Wells Fargo (WFC). Yahoo Finance senior banking reporter David Hollerith explains what this means for Wells Fargo's business. To watch more expert insights and analysis on the latest market action, check out more Market Domination Overtime here. Dave, while we have you, some breaking news on your very beat, Wells Fargo, what's the latest there? Yeah, so uh a key growth restriction, probably the most onerous thing that can happen to a large uh federally uh chartered bank um was removed. This was a part of a 2018 consent order. Now, the consent order is still in place, but um this growth restriction, which basically held them from growing their assets above a 2017 level is now gone. So effectively, the bank is out of the out of the penalty box. And that's a big deal because it goes back to this uh fake account scandal that happened um kind of through the mid 2010s and the fact that regulators their overseers are okay with what uh Wells Fargo is doing now and feels like they've moved past that is a huge sign for the bank and its CEO, Charlie Sharp. So what is Wells Fargo now in theory allowed to do that it wasn't allowed to do under some of these restrictions? Right. So acquisitions, growing their loans, uh buying more securities, anything really that um that you can think of in terms of growing the business. So it's pretty big. It also means that they can do a lot more with trading if they're interested in that because that's a capital heavy business. Banks obviously have to carry a lot of capital to reserves. So to do something like trading, they need a lot more assets. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
2 days ago
- Business
- Yahoo
Wells Fargo's asset cap lifted by the Fed: What this means
The Federal Reserve has lifted its asset cap on major bank Wells Fargo (WFC). Yahoo Finance senior banking reporter David Hollerith explains what this means for Wells Fargo's business. To watch more expert insights and analysis on the latest market action, check out more Market Domination Overtime here. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
7 days ago
- Business
- Yahoo
Wells Fargo Signs a Deal to Sell its $4.4 Billion Rail Asset Portfolio
The $4.4 billion rail equipment leasing division of Wells Fargo & Company (NYSE:WFC) will be sold to a joint venture between Brookfield Infrastructure and GATX Corporation. A team of bankers in suits, discussing the success of the company's banking products. The agreement covers the whole rail operating lease portfolio, which consists of about 105,000 railcars, as well as the rail finance leasing portfolio, which consists of 440 locomotives and 23,000 railcars. According to Wells Fargo & Company (NYSE:WFC), the deal fits with its plan to streamline operations and will not have a significant effect on its financials. Brookfield Infrastructure will own 70% of the business, with the possibility that GATX Corporation may eventually acquire the entire company. GATX Corporation will oversee operations and initially hold a 30% stake in the business. It's anticipated that the deal will close by Q1 2026. David Marks, executive vice president, Wells Fargo & Company (NYSE:WFC) Commercial Banking, commented: "This transaction is consistent with Wells Fargo's ongoing strategy of simplifying our businesses and focusing on products and services that are core to our clients," GATX Corporation acquires operational control, strengthening Brookfield Infrastructure's capital depth and its freight transport infrastructure network. While we acknowledge the potential of WFC to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than WFC and that has 100x upside potential, check out our report about this READ NEXT: and . Disclosure. None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
7 days ago
- Business
- Yahoo
Wells Fargo Approaches End of Asset Cap as OCC Lifts 2015 Consent Order
A significant 2015 consent order was lifted by the U.S. Office of the Comptroller of the Currency (OCC), which moved Wells Fargo & Company (NYSE:WFC) closer to removing its $1.95 trillion asset cap. A team of bankers in suits, discussing the success of the company's banking products. Significant regulatory progress has been made under CEO Charles Scharf, as evidenced by the closing of the seventh regulatory enforcement order in 2025 and the thirteenth since 2019. The Federal Reserve's 2018 consent order, which is linked to changes in governance and controls, is the last obstacle. Wells Fargo & Company (NYSE:WFC) has experienced regulatory attention since its 2016 fake accounts scandal, which resulted in billions of dollars in fines and an unprecedented asset cap imposed by the Federal Reserve in 2018. This week witnessed the lifting of the OCC order about its former financial subsidiaries. Scharf, who took office in 2019, has implemented measures that experts such as Stephen Biggar of Argus and Chris Marinac of Janney Montgomery Scott believe are significant. After limitations are lifted, the bank plans to expand its market operations and wholesale deposit base. While we acknowledge the potential of WFC to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than WFC and that has 100x upside potential, check out our report about this READ NEXT: and . Disclosure. None.
Yahoo
7 days ago
- Business
- Yahoo
Wells Fargo's CEO Shows Confidence Over $1.95T Asset Cap Potential End
On Wednesday, at the Bernstein Conference, Wells Fargo & Company's WFC CEO Charlie Scharf expressed confidence in the bank's regulatory improvements, signalling that the bank is inching closer to the point of lifting the $1.95 trillion asset cap. In 2018, the Federal Reserve imposed the asset cap on Wells Fargo following the bank's fake accounts scandal, which surfaced in 2016. The asset cap was introduced as a penalty for governance failures, restricting the bank's ability to expand its balance sheet until it demonstrated sufficient improvements in risk management and compliance. During the Bernstein conference, Scharf highlighted Wells Fargo's continued efforts to strengthen its compliance framework. The bank has resolved six consent orders in 2024, bringing the total number of resolved regulatory actions since 2019 to 12. It has also allocated $2 billion annually to enhance risk controls and operational processes. The bank is working to address the final two remaining consent orders. As the bank nears resolution, it is actively preparing to expand its retail deposits business, positioning itself for a new phase of growth once restrictions are lifted. Due to the asset cap, the company is unable to grow to its potential. This is affecting its loan growth. Given that loans are among the largest assets a bank can hold, the lifting of the asset cap will mark a positive turning point for Wells Fargo. This move will allow the bank to offer loans without restrictions, supporting the top-line expansion and positioning the bank for long-term growth. Further, WFC's long-term strategy remains focused on expanding deposits and trading operations, reinforcing growth through continued compliance enhancements and operational improvements. Additionally, the bank is taking a strategy centered on balancing sustainable growth with robust returns, aiming to achieve a return on tangible common equity (ROTCE) of 15% in 2025. The bank's strategy includes organic expansion, with a focus on dividend increases and share buybacks to enhance capital efficiency. To further support its growth objectives, the bank is making significant investments in technology and artificial intelligence, aimed at streamlining operations, improving risk management, and driving future business development. Over the past year, shares of WFC have gained 24.1% compared with the industry's growth of 28.2%. Image Source: Zacks Investment Research Wells Fargo currently carries a Zacks Rank #3 (Hold). Some better-ranked bank stocks are Westamerica Bancorp WABC and Eastern Bankshares EBC, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today's Zacks #1 Rank stocks here. The Zacks Consensus Estimate for WABC's earnings has remained unchanged over the last seven days for 2025. Shares of WABC have gained 0.2% over the past six months. Earnings estimates for EBC have remained unchanged over the past seven days for 2025. In the past six months, EBC shares have gained 10.5%. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Wells Fargo & Company (WFC) : Free Stock Analysis Report Westamerica Bancorporation (WABC) : Free Stock Analysis Report Eastern Bankshares, Inc. (EBC) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data
