What 40% Market Share Means for Wells Fargo
The following video is part of our "Motley Fool Conversations" series, in which senior analyst Anand Chokkavelu, CFA, discusses topics around the investing world.
Last week, Wells Fargo made the news as Bloomberg reported on a January rah-rah session Wells had for some of its loan officers. There was talk of "40% or BUST!," meaning 40% market share in U.S. home lending. That's a cartoonishly high figure, but Wells got awfully close and broke records in the first quarter, capturing a 34% share.
The fact that Wells is even talking about 40% is quite amazing and a testament to its strength while many of its competitors are retrenching. And while there's risk in ramping up (especially if lending standards are lowered), what's heartening is that Wells is sticking to its knitting. This also stands in contrast to its competitors. Anand explains in the following video.
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The article What 40% Market Share Means for Wells Fargo originally appeared on Fool.com.Anand Chokkaveluowns shares of Bank of America, Citigroup, Wells Fargo, and JPMorgan Chase. He also owns long-dated options on Bank of America and warrants on Citigroup, Wells Fargo, and JPMorgan Chase. The Motley Fool owns shares of JPMorgan Chase, Bank of America, Wells Fargo, and Citigroup and has created a covered strangle position in Wells Fargo.Motley Fool newsletter serviceshave recommended buying shares of Goldman Sachs. Try any of our Foolish newsletter servicesfree for 30 days. We Fools don't all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Motley Fool has adisclosure policy.