Are Big Banks Losing the Competitive Edge?

After dominating the mortgage business throughout 2012, Wells Fargo (NYSE: WFC  ) and JPMorgan Chase (NYSE: JPM  ) both reported lower mortgage banking revenue for the first quarter of 2013. While these megabanks lost ground, smaller rival M&T Bank (NYSE: MTB  ) posted a 66% increase in mortgage banking revenue. Is this a sign of the largest banks losing their competitive advantage?

In this video, Motley Fool banking analyst David Hanson tells investors why losing market share in the mortgage business might not be a bad thing. After focusing resources on mortgage origination, these banks may be looking toward the next opportunity. 

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.


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Related Tickers

4/23/2014 4:00 PM
JPM $56.05 Up +0.24 +0.43%
JPMorgan Chase & C… CAPS Rating: ***
MTB $122.99 Up +1.04 +0.85%
M&T Bank Corp CAPS Rating: ***
WFC $49.59 Up +0.36 +0.73%
Wells Fargo CAPS Rating: ****

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