Why It MattersWells Fargo is one of the nation’s largest mortgage lenders, and analysts watch its results for signs of economic stress. The bank’s soured loans in its commercial business grew, but its consumer business held fairly steady, with a slight rise in credit-card defaults offset by a drop in losses on auto loans. Commercial real estate, especially loans on office space, are a pain point, and the bank set aside nearly $1 billion more for losses. Commercial deposits have stabilized, while on the consumer side, “what’s driving the decline is, largely, people spending their money,” said Michael P. Santomassimo, the bank’s chief financial officer. What’s NextLike the other big banks, Wells Fargo keeps bracing for a recession — but not seeing one just yet.

Source: CNN July 14, 2023 13:44 UTC