Wells Fargo, last week became the third big bank to tell the world that first quarter profits would be higher than people were expecting. The San Francisco bank's announcement was the most definitive yet. The world reacted to the news that the bank would record $3 billion in profits by becoming giddy and bidding up the whole industry. So it's fair to say that expectations are sky-high right now for bank earnings.

But a few analysts have since injected a note of caution in the discussion. Keefe, Bruyette & Woods' Fred Cannon moved Wells Fargo to "Underperform" from "Market Perform" based on valuation. He's "concerned about the lack of details surrounding how the bank managed to report a record preliminary profit," the AP notes. He says Wells Fargo may need up to $50 billion in common equity over the next two years. Friedman, Billings, Ramsey & Co.'s Paul Miller also would like more details. He's maintaining his "underperform" rating. 

For more:
- here's the AP article

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