Chillin' out till it needs to be funded
Though earnings came a cent below expectations and shares fell 5% in early trading after Citi beat estimates handsomely. Wells Fargo reported $4.06 bln in profits but less than $2 0 bln in revenues below estimates by $600 mln
As Marketwatch catches the worms in mortgages:
Revenue from servicing mortgages more than doubled in the quarter, but revenue from creating mortgages plunged 60% and total revenue from mortgage activities fell 27%. The bank did say, however, that applications and its pipeline, measured in dollars, did grow in home mortgages.
Meanwhile Occupy Wall Street movement clouded up the Pacific, starting off branches i n Australia and New Zealand to liven up matters. Wells Fargo did not report any significant CVA amounts for profits apparently as it does not have a strong investment banking team.
A Tobin tax is still in the works as Europe lobbies for its version of financial sanity in a very uncertain Europe right now. Wells Fargo remains unruffled however, having grown 21% from September 2010 Wells Fargo also plans to restrict costs to $11 bln this year a 12% lower to increase its efficiencies as it continues to be a much better performer compared to the Top four banks that continue to be impacted by Volcker rules and other restricting trading etc in the Dodd Frank regime being discussed in its final stages. Goldman Sachs likely reports a less than $4 bln topline on Tuesday with WFC direct competitor BofA and Morgan stanley reports Wednesday (WSJ, Reuters)