Breakingviews - Wells Fargo battles forces it chose not to control

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Breakingviews - Wells Fargo battles forces it chose not to control
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Higher interest rates lifted Wells Fargo’s quarterly income, but a mortgage slowdown, private-equity losses and the cost of past bad behavior erased the benefits. Under it all is a bank worth more than the current $147 billion, says johnsfoley.

. Wells Fargo’s net interest revenue of $10.2 billion was $1.4 billion higher than in the same quarter last year.

in the past. In May its filings noted 13 legal actions – only slightly better than the 16 it listed a year earlier.Wells Fargo’s business model is another drag. Its mortgage business took a $1 billion hit from rising home-lending rates. But unlike rivals, it benefited less from frantic securities trading prompted by choppy markets. Though Scharf’s traders turned in an 11% annual increase in trading revenue, the total was a quarter ofBeneath all that is a potentially valuable bank.

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