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Why Wells Fargo’s asset cap could be a blessing in disguise as recession fears roil markets
Morgan Chittum - CNBC -
08/04
Piper Sandler analysts upgraded the bank stock to a buy from a hold-equivalent rating.
It's no secret: Wells Fargo's $1.95 trillion asset cap has long weighed on the company's business growth and stock price. But new Wall Street research details how the landmark regulatory punishment might actually be protecting the bank during the recent stock market downturn. The news Piper Sandler on Monday upgraded its Wells Fargo rating to a buy-equivalent from hold, citing the stock's decline as an attractive entry point for investors. In particular, analysts said that the Federal Reserve-imposed asset cap serves as an advantage in navigating macroeconomic uncertainty while President Donald Trump 's tariffs escalate recess... [Short citation of 8% of the original article]
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