Despite Incoming Higher Capital Requirements, Wells Fargo Remains Well Positioned to Buy Back Stock
Share repurchases have always been an important part of the investment thesis when it comes to the megabank stocks.
But with higher capital requirements looming, many of these large banks have had to slow their buyback activity. Regulators are widely expected to release the new requirements soon and provide banks with time to phase in the changes. Speculation and media reports suggest that capital requirements for the megabanks could increase by 20%.
However, even if the big jump in regulatory capital requirements materializes, Wells Fargo (NYSE: WFC) remains in a strong position from a capital perspective to continue to buy back its own stock and return capital to shareholders. Here's why.
Source Fool.com
