Man bites dog: Wells Fargo boosts dividend

These were welcome surprises: Wells Fargo, in addition to reporting a smaller-than-expected quarterly loss, actually boosted its dividend, to 34 cents from 31 cents. This is a bold move; an act of outright confidence at a time when other banks will likely be forced to lower their payouts. You have to wonder if this is almost, well, foolhardy, even though Wells Fargo was able to avoid the worst of the subprime debacle. Still, the bank also took a charge-off of $1.5 billion and boosted reserves against future losses by another $1.5 billion. And, as the AP notes, it has abut $8.5 billion in home equity loans. The bank is signaling that it has its capital needs well in hand. It kept its mortgage origination level at $31 billion, almost all in conforming, traditional loans. Good job.  

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