We recently published Jim Cramer Reveals His Trading Strategy For H2 2025 & Discusses These 16 Stockse. Wells Fargo & Company (NYSE:WFC) is one of the stocks Jim Cramer recently discussed.
Wells Fargo & Company (NYSE:WFC) is one of the biggest banks in America. The firm’s shares have gained 16% year-to-date and are up by 12% since late June. June was an important month for the firm as it saw the Federal Reserve remove a $1.95 trillion asset cap on the bank which was levied in 2018. The restrictions were in place to allow Wells Fargo & Company (NYSE:WFC) to demonstrate that it had removed all deficits in its internal processes which had led to a fake account scandal. Cramer commented on the bank’s valuation and the restrictions:
“Well, Wells Fargo is trading at 14 times earnings. They had that cap ever since February 8th of 2018. That comes off, we saw that that came off a week ago. What I think really matters is that Charlie Scharf wants to take over a lot of the businesses done by other banks. And I would . . .when you bring in. . .a lot of these people from JPMorgan it doesn’t matter.”
Cramer had discussed the restriction in detail in June. Here’s what he said:
“There are many reasons why Trump won in November, inflation, immigration, cultural backlash, but there’s one reason why the business community got behind him in a way they never really did in 2016 or 2020, and that’s deregulation… This morning, we got the chance to interview Charlie Scharf, the CEO of Wells Fargo. Talked about the Federal Reserve’s removal of the asset capital on this bank last night… Wells certainly had it coming back then, but it was a severe penalty… I knew the Biden administration wouldn’t lift the cap. They had zero sympathy for big business, and they didn’t like the banks…
A team of bankers in suits, discussing the success of the company’s banking products.
… While I’m at it, let me say that both of these stocks are tremendous buys… Wells Fargo will be able to save a ton of money as the endless compliance monitoring may have finally run its course. Seven years of purgatory is enough already. The all-new Wells deserves to be let out of the doghouse. My hope is that the deregulation will continue because that’s exactly what we need after four years of heavy-handed regulation. Capital One Discover, no cap on Wells Fargo, all I can say is it’s about time.”
