Wednesday, April 22, 2009

Wells Fargo reported 52 percent net income. I wonder why?




Wells Fargo & Co. reported a 52 percent jump in net income as it reaped quick rewards from its acquisition of Wachovia Corp., but the San Francisco bank also boosted credit reserves in anticipation of mounting loan losses in the months ahead. Are you wonder why too. right? Well, 'Boy, we're glad we had this economic crisis?.

The company said Wednesday that first-quarter net income reached a record $3.05 billion (56 cents per share), in line with the preliminary results announced two weeks ago that sent the stock soaring and fueled a broader Wall Street rally. Wells Fargo earned nearly $2 billion in the year-ago period (60 cents per share), before it picked up its wobbling Charlotte, N.C., competitor on the cheap, for about $13 billion in late December.

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