NEW YORK (TheStreet) -- Shares of Wells Fargo & Co. (WFC) are down 0.14% to $53.76 after the Financial Stability Board (FSB) said that the world's largest banks will have to build up their loss-absorbing liability buffers to see them through a crisis, Bloomberg reports.
The FSB, led by Bank of England Governor Mark Carney, said today that the biggest banks may be required to have total loss-absorbing capacity (TLAC) equivalent to as much as a quarter of their assets weighted for risk, according to Bloomberg.
"The outlines of how we are going to end too-big-to-fail are here," Carney said.
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The TLAC rules would apply at the earliest in 2019 to the FSB's register of global systemically important banks, Bloomberg added, noting, the latest list, published last week, contains 30 banks, with HSBC Holdings Plc (HSBC) and JPMorgan Chase & Co. (JPM) identified as the most significant.
Separately, TheStreet Ratings team rates WELLS FARGO & CO as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:
"We rate WELLS FARGO & CO (WFC) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, growth in earnings per share, expanding profit margins and increase in net income. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity."