This Week in Finance: Deutsche Bank AG (USA) (DB), Wells Fargo & Co (WFC) & Others

Based on peer JPMorgan Chase & Co. (NYSE:JPM) and Bank of America Corp (NYSE:BAC)‘s previous interactions with scandals, Wells Fargo stock could be a good long-term buying opportunity. JPMorgan shares fell sharply after the London Whale scandal, and Bank of America’s stock retreated even more due to the robo-calling/mortgage related headlines in the previous years. Several years later, investors have forgotten about the events, and are bullish on both equities due to the strong U.S. economy and the expectation of an eventual interest rate hike, which would likely boost returns for both banks. The same could eventually happen to Wells Fargo (although it’s pretty much impossible to call a short term bottom on the event). Among the funds in our database, 99 were long JPMorgan Chase & Co. (NYSE:JPM), and 102 funds owned shares of Bank of America Corp (NYSE:BAC) at the end of the second quarter.

Not to be left out, E*TRADE Financial Corp (NASDAQ:ETFC) will also benefit from an interest rate normalization given that the company lends out money to margin traders and has a bank. Shares of the broker have done very well this week, gaining 6% since Monday. A total of 35 funds in our database owned $739.32 million worth of E*TRADE Financial Corp (NASDAQ:ETFC)’s stock, which accounted for 11.30% of the float on June 30, versus 39 funds and $775.92 million, respectively, a quarter earlier.

Disclosure: None