In the banking industry, a profit is made by borrowing money, paying for it at one rate of interest, lending that money elsewhere at a different rate of interest, and keeping the difference. But now, across the industry, that difference is getting smaller. In this video, Motley Fool financial analyst Matt Koppenheffer talks about three things Wells Fargo is doing to offset these shrinking margins.
Wells Fargo's dedication to solid, conservative banking helped it vastly outperform its peers during the financial meltdown. Today, Wells is the same great bank as ever, but with its stock trading at a premium to the rest of the industry, is there still room to buy, or is it time to cash in your gains? To help figure out whether Wells Fargo is a buy today, I invite you to download our premium research report from one of The Motley Fool's top banking analysts. Click here now for instant access to this in-depth take on Wells Fargo.
The article 3 Ways Wells Fargo Is Dealing With Low Margins originally appeared on Fool.com.
Matt Koppenheffer owns shares of Bank of America. The Motley Fool recommends Wells Fargo. The Motley Fool owns shares of Bank of America, Citigroup, and Wells Fargo. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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