Wall Street is one tough taskmaster.
It is being characterized as “disappointed” in the earnings reported today by Wells Fargo bank and, as a result, the Dow industrials are dropping.
What did Wells Fargo do to warrant such scorn? It reported a $4.1 billion profit in the third quarter, a 21-percent increase over a year ago.
But while its profit increased, the amount of revenue the bank generates did not.
Still, more people are putting money in the bank than taking it out — deposits are up 8 percent, and the total amount of “bad” loans dropped.
How can Wells Fargo increase its revenue? The company has dropped all of its reward programs for credit cards and is “testing” a monthly fee in some markets, mostly in the south.
What’s good for banks and Wall Street isn’t always so hot for customers.