Wells Fargo (NYSE:
WFC), along with other "super-regionals," such as
U.S. Bancorp (NYSE:
USB),
PNC (NYSE:
PNC) and
BB&T (NYSE:
BBT),
occupies appealing real estate. The firms are big enough to secure
cheap credit and massive operating scale, but they don't engage in the
same level of volatility-inducing investment banking or
proprietary trading as the big money center banks, nor do they carry quite the same regulatory burdens.
All
of that said, performance still drives ultimate valuation, and Wells
Fargo took a little stumble in the third quarter. One quarter is not
enough data to make sweeping judgments about market share or
management's strategy, but it may be enough to threaten what has been a
premium-to-peers valuation.
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