This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
See Cramer's multi-million dollar portfolio for FREE and get his new book Get Rich Carefully! Learn More

Wells CFO Says Bank Is Basel Ready

NEW YORK (TheStreet) -- Wells Fargo (WFC) shares surged, along with the broader sector, one day after banking regulators agreed on new international capital standards as part of Basel III.

"There is still a lot to be determined from these regulations," Wells Fargo's CFO Howard Atkins said this morning at the Barclays Capital Global Financial Services Conference held in New York.

The new rules set a total common equity requirement of 7%, which is a combination of a minimum Tier 1 common equity of 4.5% as well as a requirement that banks hold a "capital conservation buffer" of 2.5%.

"As you can see, as of June 30, our Tier 1 common of 7.61%. We're growing capital very significantly internally," Atkins said. Wells Fargo has increased its Tier 1 common by approximately 115 basis points year to date. "There will be some deductions from that 7.6%, but we don't really see at this point that this is a big deal for us."

That being said, Atkins cautioned that Wells Fargo still needs to get approval from U.S. bank regulators in order to use its capital to benefit shareholders directly.

"We still have to get permission from the [regulators] on either dividend or buybacks," Atkins said in answer to an attendee's question. "We'll have to see how quickly we can do that."

The only permission Wells Fargo has had so far is in repurchasing warrants associated with the U.S. Treasury Troubled Asset Relief Program, or TARP, Atkins said. The bank repaid the TARP bailout funds last year.

Wells Fargo also has its hands full with the integration of Wachovia, which Atkins called the "gift that keeps on giving," in regards to revenue generation, cost savings and credit quality expectations that are better than expected.

Buying another bank "wouldn't really make sense," Atkins said, but Wells Fargo continues to do "product acquisitions."

Wells Fargo shares surged 4% soon after the market opened. The stock was more recently rising 75 cents, or 2.9% to $26.51.

The two-day Barclays conference will feature leaders from U.S. large and regional banks as well as global financial services giving an update on their firms to investors. Bank leaders are sure to get a lot of questions regarding the latest capital regulations from attendees.

Listen to TheStreet staff reporters Maria Woehr and Laurie Kulikowski discuss what to expect from the Barclays conference, on Bank Stock Buzz.

JPMorgan Chase's (JPM) Chairman and CEO Jamie Dimon is expected to give the keynote lunchtime presentation at the Barclays conference on Tuesday. Bank of America's (BAC) CEO Brian Moynihan will present Tuesday afternoon. Citigroup's (C) CEO Vikram Pandit will not be presenting at the conference. A spokesman said Pandit's schedule conflicted with the conference.

Stock quotes in this article: WFC, BAC, JPM, C 

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
DOW 16,408.54 -16.31 -0.10%
S&P 500 1,864.85 +2.54 0.14%
NASDAQ 4,095.5160 +9.2910 0.23%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto
Advertising Partners

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs