The bank boosted its buyback plan by another million shares. The bank is really hurting from extremely low interest rates, which make it hard for lenders to make money. Hundreds of branches are closing. Unlike its rivals, Wells Fargo can't outrun low rates by either lending more or spending less. That's because Wells Fargo is still operating under an unprecedented asset cap imposed by the Fed three years ago. Those sanctions limit Wells Fargo's ability to lend and requires it to spend more to resolve its compliance problems.
JPMorgan Chase just reported a record quarterly profit. Nevertheless, it seems likely that the revelations of the bank's malfeasance continue to tarnish its image in a skeptical public's eyes.
According to the J. Potential customers can open a new Wells Fargo account online or in a bank branch. Applying for an account online also provides an instant application status response. Once you are set up with a Wells Fargo account, you can take care of your banking needs online and with the mobile app. Customers looking for a well-established and well-rounded financial institution may do well with Wells Fargo. Not only does this bank possess a large geographic footprint, but it also has every type of account, product and service you may need — a true one-stop banking shop.
Add in the fact that you can enjoy some relationship bonuses for linking multiple accounts or products under the Wells Fargo umbrella and this institution is a clear winner for anyone who values efficiency and streamlined banking experience. That said, Wells Fargo has not yet earned back the public's trust after the revelations from to , of a series of systemic fraudulent practices that victimized its own clients for nearly two decades. Unless Wells Fargo can offer more tempting interest rates or find other ways to distinguish its products, its dented reputation — coupled with lackluster rates — makes it a less-enticing option for anyone who is not looking specifically for convenience.
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Your Money. Personal Finance. Your Practice. Popular Courses. Open Account. Pros Highly accessible — numerous locations Frequently waived monthly fees Innovative, secure data-sharing, and money management apps. Cons Low interest rates Overdraft fees levied up to three times daily History of costly scandals. Company Overview. Year Founded Official Website www. Pros Explained. Cons Explained. Best For. What could go wrong? A relatively new Presidential administration could take a much harder approach to Wells Fargo's lingering scandals and its sluggish efforts to improve risk management and financial controls.
This in turn could encourage the Fed to maintain its asset cap. Additionally, Wells Fargo could slip in its attempts to improve efficiencies and costs, or it could fall behind on its stock repurchase plan. An extended pandemic toll could also impact the bank's profitability by keeping interest rates low and slowing the economy.
Compared to other top U. Investors have been paying up for Wells Fargo stock, cheering its recovery. Its trailing month price-to-earnings ratio hovers close to 12, compared to around Indeed, Wells Fargo still offers plenty of potential for long-term investors, including a 1. This, however, may not be the time to buy. Watch for additional negative headlines that could push the stock price lower in the weeks to come.
And keep particular watch on any news on the Fed-imposed asset cap on the bank. Discounted offers are only available to new members. Stock Advisor will renew at the then current list price. Average returns of all recommendations since inception.
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