Wells Fargo (WFC) said it earned $394 million, or 8 cents per share, during the fourth quarter. That pleasantly surprised the analysts, who were expecting a loss of 1 cent. The bank also surprised some folks by waxing very optimistic and confident about future prospects.

The AP notes that the banks broke from the "cautious, even downbeat forecasts of rivals" by using words like "favorable" and "confidence" when referring to its near-term prognosis. It believes loan defaults are nearing a peak, if they have not already crossed it. The firm also indicated the recession-weary consumer could be making a comeback. But the statements certainly reflect a kind of cockiness abut the extent to which it has written down bad loans, while at the same time enhancing the quality of its credit. We can only hope they're right on. If not, their words could come back to haunt them. 

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