Tuesday, October 11, 2011
The Largest Bank in the US
By market value, Wells Fargo is now the largest bank in the US. Even though it is a distant 4th in terms of assets and capital, WFC is the only mega-bank that trades at parity with its book value. While WFC is a great bank, the relative valuation seems a bit off. Under what economic scenario does Bank of America lose 71% of it's book value (as implied by its market cap) and WFC doesn't sustain any losses?
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