Chillin' out till it needs to be funded
During the Bank results season last month the $20 bln revenues of Wells Fargo, much as they were evenly split between Net interest Income of $10 bln from commercial banking and deposits and investment and corporate banking income of another $10 bln did raise a few hopes. However at that time CFO Atkins had mentioned a loss of $270 million from overdraft fees and another $50 mln from new credit card regulation reforms of 2009/10.
Bank of America had been the biggest loser of the reforms. While Wells fargo had also aborted its attempts in mortgage superstores earlier in the first quarter of last year and their Wachovia book has turned out much better than expected and the bank’s portfolio seemed to be an important reason why Wells Fargo survived the crisis and the bidding war for Wachovia with Citi. legacy Wells and Wachovia had always prided themselves on a Net Interest Margin of over 4% on its huge retail portfolio
Thus, it is with extreme surprise one notes Howard Atkins leaving the company midstream though the bank has mentioned his moving on is not related to any of the bank’s performance items. He is on an unpaid leave of absence till august while Tim Sloan now moves two steps to CAO and CFO from his head of comml banking, real estate and insurance position.
Wells Fargo though headquartered in NC has a significant footprint in the West including the Long Beach area where the economy has held out stronger thant he other local administrations in the United states. However, financially the bank’s growth in unexplored frontiers has not yielded significant profits or brand value