The fourth largest US bank, Wells Fargo along with 19 of the largest banks in the country were subject to government stress tests last month designed to assess whether they would survive under worsening economic conditions, including a projected unemployment rate of about 12%. So far Wells Fargo has kept quiet about the results that will be released soon, but top executives have ensured investors that the bank is well capitalized despite some analysts believing they will need more capital to weather one of the most severe economic downturns in the country’s history.
Wells Fargo Has Reports Record First Quarter
Wells Fargo recently posted a record first quarter profit gain, despite accepting $25 billion from the government’s TARP program designed to infuse capital to prop up the largest financial companies. The stress test is not designed to test bank solvency, and no real details have been released yet despite public demand for a more transparent evaluation process.
Wells Fargo Remains Committed to Great Service
Though hit hard by the recession, Wells Fargo continues to be a prime-rated bank offering some of the best banking rates in the market. For this and other banking rates information, visit Go Banking Rates or the exclusive Wells Fargo page.