Wells Fargo & Co (WFC), JPMorgan Chase & Co. (JPM): Banks Counter Stringent Rules

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My opinion

I believe the banks’ proposal holds little significance because what it’s doing is simply shifting the burden of a bank’s failure to its creditor rather than the taxpayers. Since most of the participating banks already meet the banks’ proposal, it doesn’t safeguard against a bank failure and the resultant panic in the financial market. However, looking at the existing capital positions and estimates of the new regulations, Wells Fargo & Co (NYSE:WFC) appears to be best positioned to withstand a crisis.

Adnan Khan has no position in any stocks mentioned. The Motley Fool recommends Wells Fargo. The Motley Fool owns shares of Citigroup Inc (NYSE:C) , JPMorgan Chase & Co (NYSE:JPM)., and Wells Fargo.

The article Banks’ Counter Stringent Rules originally appeared on Fool.com.

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