Analysts Question Wells' Loan-Loss Provision

Some observers viewed Wells Fargo's actions in a more positive light.

"The brokered third-party home equity loans were the area of greatest risk for them," says Frank Barkocy, the director of research at Mendon Capital Advisors and the former director at hedge fund manager, Keefe Managers. "What they have done is isolated this portfolio."

"Their own loan originations [are] still in excellent shape," Barkocy says. "There is always the concern -- is this it? Have they captured everything? But at least they've taken aggressive actions and they are taking steps to more meaningfully address the issues."

"Just from the performance in the stock today. ... I think it is almost a breath of fresh air that someone is taking an aggressive stance," he says.

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