Hints and tips:
Related Special Reports
...Profits at US bank Wells Fargo fell in the first quarter, in a sign that the benefits of high interest rates are waning for the big lenders....
...First-quarter earnings suggest 2023 may be as good as it gets when it comes to NII and net interest margins. At Wells Fargo, first quarter NII came in 8 per cent lower compared with a year earlier....
...Other top banks Citigroup, JPMorgan Chase and Wells Fargo also recorded drops in lending in the first three months of the year as they revealed results late last week....
...Wells Fargo is setting aside as much as $1bn for “unanticipated” severance costs in the fourth quarter of this year, as the US bank seeks to lower expenses and with fewer employees leaving voluntarily....
...A source close to Wells Fargo said that some of the cuts would not happen until sometime in 2024....
...Sloan, who worked at Wells for more than 30 years, was promoted to chief operating officer and then served as CEO from 2016 to 2019 as the bank grappled with a multiplying set of risk and compliance problems...
...Wells Fargo workers have said that the trend has made their jobs more stressful as they struggle to help customers who prefer to bank with human tellers....
...But banks are finally having to pass on higher savings rates to depositors, according to JPMorgan and Wells Fargo, which also reported earnings....
...Over the past two years, big banks such as JPMorgan Chase, Bank of America, Citigroup and Wells Fargo charged more for loans in lockstep with the Fed lifting interest rates, without passing on the increase...
...Wells Fargo reported a 60 per cent increase in profits in the third quarter, as the bank continues to benefit from higher interest rates....
...The 12 large cap banks followed by Morgan Stanley analysts, including PNC, JPMorgan Chase, Bank of America and Wells Fargo, now have more than $180bn of excess common equity tier one capital — a record high...
...Wells Fargo has partnered with asset manager Centerbridge to launch a $5bn private credit fund that will lend to mid-sized US companies, as banks race to find a toehold in the rapidly growing private credit...
...Under chief executive Charlie Scharf, Wells Fargo has made progress on fixing the internal problems that gave rise to a series of scandals....
...Wells Fargo has partnered with asset manager Centerbridge to launch a $5bn private credit fund that will lend to midsized US companies, as banks race to find a toehold in the rapidly growing private credit...
...But it jumped 34 per cent at JPMorgan to $89.7bn, more than double the increase of the next bank, Wells Fargo, which reported a 16.5 per cent rise....
...Wells Fargo bank analyst Mike Mayo said it made sense for banks with healthy levels of capital to return money to shareholders when profits were high....
...So that’s basically for big banks that take in lots of deposits like JPMorgan or Wells Fargo. That’s really where they make a lot of their profits from....
...Tolstedt, the only banker at any level at Wells Fargo who was charged criminally in connection with massive fraud, faced as much as 16 months in prison. In March, in a deal with the U.S....
...Citi and Wells Fargo also recorded drops in lending. The pullback in lending hit JPMorgan Chase particularly hard....
...Despite this, in recent days executives from the country’s four largest banks — JPMorgan Chase, Bank of America, Citigroup and Wells Fargo — said during earnings calls that consumers were resilient....
...Larger banks such as JPMorgan Chase, Bank of America and Wells Fargo also saw their profits fall in the final quarter of 2023....
...The US has eight G-SIBs: JPMorgan, Citigroup, Bank of America, Goldman Sachs, Morgan Stanley, Bank of New York Mellon, State Street and Wells Fargo....
...For Wells Fargo, the expanded space may come in handy as it embarks on its latest effort to build out its investment banking business....
...The European Central Bank is set to meet in Frankfurt on Thursday to debate interest rates. The consensus among economists is that it is a little too soon to start lowering them....
...Franklin Templeton is lukewarm but likes “naturally diversifying ‘alternatives’ such as private assets” RBC Capital Markets has a Q&A. “The time to pivot will come in due course,” says Wells Fargo....
International Edition