Wells Fargo projects record $3 billion 1Q profit?
NEW YORK – Wells Fargo & Co. said Thursday it expects record first-quarter earnings of billion, easily surpassing analysts’ estimates and providing an encouraging sign for the banking industry.
Wells Fargo is the first major bank to give an indication of how the first-quarter looked.
Most of that business was refinance applications, but about 25 percent came from customers looking to purchase homes, Atkins Wells Fargo’s CFO said, noting the recent quarter’s mortgage activity has been among the strongest quarters since the housing market began to collapse in 2007.
The government has been implementing many new programs in an effort to cut interest rates, hoping to bolster the beleaguered housing market, and those programs have definitely helped, Atkins said.
"For sure the reduction in interest rates is having an impact on the wave of activity in the mortgage market," Atkins said.
Signs of improvement from one of the nation’s largest banks gave investors reason to rally around the banking sector amid hopes that the worst of the credit crisis is ending. The KBW Bank Index, which tracks 24 of the nation’s largest banks, surged 20.1 percent to 33.81. Some of the nation’s hardest hit banks have also rallied, with Citigroup Inc. gaining 34 cents, or 12.6 percent, to .04. Shares of Bank of America Corp. rose .49, or 35.3 percent, to .55.
Are you feeling hopeful, maybe a little bit?
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Sure, I am feeling much better. My portfolio is gradually recovering. I think a major contributor to Wells Fargo’s good quarter was the redefinition of the mark to market rule. I think the other banks will also benefit and this simple move by the accounting principles board and it will lead the way out of the financial briar patch.
i wish the banks would just forget about my mortgage loan. sigh
they got a 25 billion bailout and another 20 billion in low interest loans, and it says it has a 3 billion profit?……what a joke……it got over 40 billion in handouts and it has a 3 billion profit…lmao……why are you fooled?…..they are 45 billion in debt not 3 billion in the profit….that is gross profit…..not net profit
Excellent, Tracy!
You get it. The only way out of this is to promote consumer confidence.
Now ask yourself why the cons want to keep all this under a bushel, hmmm? To continue their own agenda?
Bush’s fault.
amazing that this is still on the internet – how is the government going to take over the banking industry if we know what is really going on.
Bush still sucks. It’s all his fault.
This is just the beginning, so says the congressional budget office.
And the moves Obama is making is going to make it worse.
The banks that are turning around and trying to give back the TARP money, he won’t let them. He wants to take over the banks and turn the governing over to the EU.
Of course 2012 the next President will reverse it all.
No I am not feeling hopeful, because I don’t believe this nonsense. Big freaking deal. What about the bail out money they got? So what a 3 billion profit, big deal. Pay back the money and prove yourself financially solvent them and every other bank then maybe I’ll feel hopeful.
Also the stock market is not an indicator of how well or poor our economy is doing. It means virtually nothing to the average American. Now if only most of them were smart enough to understand that.
Wall Street reacted favorably. I sure hope it’s a positive sign of things to come. As people go back to work, banks start freeing up money, and the stock market rebounds things are bound to get better.