In the results of the Federal Reserve's Comprehensive Capital Analysis and Review, or CCAR, round of banking stress tests this year, Wells Fargo (NYSE:WFC) came out very strong, unsurprisingly. What was surprising however was that based on the results, the Fed cleared the bank to initiate a share repurchase program for 350 million shares, or approximately $17 billion dollars worth of shares. While on the surface, this is an enormous amount of money being returned to shareholders which should definitely please investors, there may be reason to view this move with mixed emotions.
In this segment of Thursday's Where the Money Is, Motley Fool banking analysts Matt Koppenheffer and David Hanson take a look at Wells Fargo and its new share repurchase program, and the strategy behind the move.
The biggest change you never saw coming
Do you hate your bank? If you're like most Americans, chances are good that you answered yes to that question. While that's not great news for consumers, it certainly creates opportunity for savvy investors. That's because there's a brand-new company that's revolutionizing banking, and is poised to kill the hated traditional brick-and-mortar banking model. And amazingly, despite its rapid growth, this company is still flying under the radar of Wall Street. To learn about about this company, click here to access our new special free report.
David Hanson has no position in any stocks mentioned. Matt Koppenheffer has no position in any stocks mentioned. The Motley Fool recommends Wells Fargo. The Motley Fool owns shares of 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.