Over the past week there’s been a lot of talk about Wells Fargo (WFC) and whether it mistakenly swallowed a hand-grenade when it bought Wachovia late last year.
So how’s the market reacted? Mostly ignoring it. In the middle of last week the stock took a hit, but it’s only back to where it was 5 days ago, and certainly the hit has been nothing of the scale you’d imagine if the bank were really in so much trouble.
At this point, we’re inclined to believe the market, which in the past has done a pretty good job of sussing out the banks that are in trouble. That the market isn’t freaked out by a few articles speaks volumes.