- IRS official refuses to answer questions at scandal hearing |
- Global stocks, oil fall after Bernanke; dollar gains |
- Oklahoma tornado victims astounded at how they survived |
- CORRECTED-White House threatens veto of bill to bypass Obama on Keystone
- British soldier hacked to death in suspected Islamist attack
Analysts have questions about Wells Fargo's risks
(Reuters) - Analysts are likely to pepper Wells Fargo & Co (WFC.N) with questions about its investment portfolio at the bank's investor day on Tuesday, after JPMorgan Chase & Co (JPM.N) disclosed a surprise investment loss this month.
Wells Fargo faces the same pressure as JPMorgan and every other U.S. bank right now: boosting income is tough when loan demand is weak and lending margins are tight.
Deposits have been flooding into the bank, and it has struggled to find good places to invest them. JPMorgan's excess deposits were invested by the bank's Chief Investment Office, which made trades that have generated at least $2 billon of paper losses.
Wells has been one of the more successful U.S. banks in recent years. It expanded to the East Coast after its 2008 purchase of Wachovia, and now eclipses JPMorgan as the largest bank by market value.
- Tweet this
- Share this
- Digg this