Matt Frankel

And Wells Fargo,

is particularly interesting because they don't depend as much on investment banking.

We're a big winner.

Their stock's up 10% since earnings.

One major thing is that management is now expecting 17% to 18% returns on tangible common equity.

over the medium-term, up from the previous estimates, after the Federal Reserve lifted their asset cap finally after seven years.

The bank is now going on offense.

Charlie Scharf, the CEO, said that Wells Fargo aims to be the No.

1 consumer bank, a lofty goal, and a top-five investment bank.

I don't even think they're a top-10 investment bank right now.

Plus, like Bank of America, Wells Fargo decreased their loan loss provision significantly.

Some really big surprises so far.

Look, I have mixed thoughts, just like Tyler does, mainly because the sharp declines in the loss reserves from both Bank of America and Wells Fargo really seem to contradict Jamie Dimon's statement on credit quality.

I agree, and I've been saying for a long time that the auto lending industry, especially the subprime market, could be a bit of a house of cards.

It is far too easy to borrow, say, $50,000 to buy a depreciating asset.

Right now, it's harder to get a mortgage, which is a safer form of a loan.

But that doesn't mean that all private credit is necessarily set for a collapse.

It could just be specific to the auto lending industry.

It's definitely worth monitoring over the next few quarters.

But over the past few years, since 2022 when the bear market happened, pretty much every fear about deteriorating credit hasn't materialized as much as we thought it would.