Wells Fargo at Merrill Lynch Conference Notes

Neal Blinde – Treasurer

Benefit from rising interest rate environment

“the result that we just had in the US Election where we had some really significant short-term increases in the yield curve, which are a real positive and because we had also positioned the balance sheet to still be modestly asset-sensitive, that’s an environment that we can benefit in as well”

Banks who do best aren’t the ones who speculate on interest rates

“And when I think about it, the banks that are most successful in doing that are not the banks that do the best job of guessing what the future rate path is going to look like, because no one is going to get that right all of the time. The banks who do the best job of managing through the rate cycle are the ones that don’t speculate on interest rates, because the most important tools for managing through rate cycles are the diversity and core strengths in the business lines and the ability of active management to identify the opportunities in changing markets and to take advantage of those opportunities in the business, in the core elements of the business.”

The biggest impact to capital ratios is what is going on in the RWA side of the equation

“And to give you a little bit of context around that, it’s very easy in common for people who are analyzing the industry and for us within the industry to focus on the numerator and our capital calculations. But the reality is, the biggest impact on the amount of capital we need to hold is, the denominator, what’s happening in that RWA calculation. And there is a lot within that regime that is in flux right now.”