Wells Fargo, Financial Institution | featured news

The institution is accelerating its cost-cutting strategy, planning to pare its operations so much that it will lose its spot as the nation’s largest bank employer, falling behind the likes of JP Morgan Chase, Wells Fargo and Citigroup.

Late last week, a research report by the Susquehanna Financial Group got the market buzzing about the possibility of Wells Fargo acquiring Discover Financial Services. Such an acquisition would no doubt be in line with Wells Fargo’s strategy of focusing on traditional banking services for growth. And the bank has made it clear in the recent past that it will not shy away from opportunities to grow inorganically. So, is there really value to be gained from such a merger between the fourth largest U.S. bank in terms of assets and the fourth largest payments firm?

Wells Fargo's profit jumped 13 percent in the first three months of the year, thanks to strong mortgage lending and a drop in delinquent loans, the bank said Friday.

The Federal Reserve also said on Tuesday that JPMorgan Chase, Wells Fargo, U.S. Bancorp and others could raise dividends or buy back stock.

Fourth-quarter profit at Wells Fargo rose 20% as the banking giant posted more loan growth and again reduced the amount of money it sets aside to cover potential loan losses.

The bank beat Q4 estimates. Executives say credit statistics are improving.