|
This didn't help Wells.
Wells Fargo & Co., the biggest U.S. bank by stock-market value, may need to raise $10 billion and cut its dividend after the acquisition of Wachovia Corp., wrote Atlantic Equities analyst Richard Staite. Staite, based in London, downgraded Wells Fargo to "underweight" from "neutral" Wednesday and said the bank may announce disappointing earnings this year because of the deteriorating economy. Wells Fargo reports fourth-quarter earnings on Jan. 28.
"With the accelerating decline in house prices in California and surge in unemployment we expect them to suffer significant losses in 2009," Staite wrote. "Given the weak economic outlook, there is a chance the dividend could be cut as a way to conserve capital."
Wells Fargo's shares have outperformed those of its top competitors, including J.P. Morgan Chase & Co., Citigroup Inc. and Bank of America Corp., in the past year because the company avoided most of the riskiest loans during the credit bubble.
__________________
skype = "adultdatelink"
|