Wells Fargo is like the fat kid at the lunch table eyeing your Twinkies. It's got a dominant one-third share of the U.S. mortgage market these days. And it's looking to make further inroads in the auto loan space after 18% year-over-year growth in the second quarter.
Specifically, Wells is going after Ally Financial's Twinkies. Ally was spun out from GM after the financial crisis (it used to be GMAC) and is still GM's "preferred lender" ... at least until the end of 2013. Recently, Wells made an agreement with GM to increase the amount of territory it can offer "subvented" loans to. These are the loans at below-market interest rates you see advertised on TV (if you're wondering, the auto manufacturers make the lenders whole).Fool analyst Anand Chokkavelu would watch out for an increasingly hungry Wells Fargo if he were Ally Financial. He explains in the video below.
If you like Wells Fargo, there's a smaller, under-the-radar bank you should check out. It’s been called one of The Stocks Only the Smartest Investors Are Buying. You can learn about it, and more, in our exclusive free report. Just click here to keep reading.
