This is a marketwatch.com article.
For months, if not years, the biggest issue facing bank stocks could be boiled down to one word: rates. Now, another word may have replaced it: crisis.
While investors continue to eye the Federal Reserve’s interest-rate policies for the impact they could have on the financial sector, a pair of company-specific news stories, involving Wells Fargo & Co. WFC, +0.17% and Deutsche Bank AG DB, -0.22% have overshadowed that factor of late for many investors, and could be a primary driver for the sector over coming months.
“Right now the big issues surrounding the financial space are company-specific rather than policy-related,” said Peter Andersen, chief investment officer at Fiduciary Trust, which has $11 billion in assets under supervision. “We know what the Fed will do, generally; it is giving us constant data about the conditions under which it will raise rates. What we don’t know is whether there will be a resolution with Deutsche Bank, whether there will be sanctions on Wells Fargo, or whether there will be contagion from either.”
PiggyBankBlog Courtroom Bailiff: “All Rise! The Honorable Wells Fargo Whistleblower Elizabeth Jacobson has entered the Courtroom of Public Opinion in recent PiggyBankBlog Court of Public Opinion Radio Interview!”