Wells Fargo Avoids Outside Investors and 4 Hot Stocks Moving Now
Wells Fargo & Company (NYSE:WFC): Current price $35.53
The Volcker Rule is expected to be finalized this year. Major banks are already pulling back from private equity investments ahead of the rules. But not Wells Fargo & Company. The bank invests in buyouts and venture capital deals largely on its own, with capital only from Wells Fargo itself and some employees. By avoiding equity from outside investors, the bank is considered to be engaging in “merchant banking,” likely to be exempt under the new rule, according to Reuters.