4 Financial Stock Stories to Take to the Bank
Wells Fargo & Co. (NYSE:WFC): Current price $35.64
The fine print of the Volcker Rule is expected to be finalized as soon as 2013. Top banks like Bank of America Corporation and Citigroup are withdrawing from private equity investments ahead of the rules which should blocked banks from making large bets with their capital, among which include sizable investments in private equity funds, at the risk that taxpayers would be left holding the bag when wagers soured. However, Wells Fargo invests in buyouts and venture capital deals largely on its own, with capital solely from Wells Fargo itself and a few employees. By keeping equity from outside investors out, the bank is engaging in “merchant banking,” an activity that will probably be exempt under the Volcker Rule, according to lawyers and people familiar with the matter.
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