NEW YORK (TheStreet) -- Wells Fargo  (WFC - Get Report) stock is advancing by 1.68% to $49.66 in late-morning trading on Monday, after the company's investment banking arm was named a U.S. primary dealer by the Federal Reserve Bank of New York.

Primary dealers serve as trading counterparties to the New York Fed, and meet with Fed policy makers and Treasury officials to discuss funding needs, auction schedule changes and the outlook for interest rates. 

This marks the first time that the New York Fed has added a new member since TD Securities was designated a primary dealer in February 2014. 

Being a primary dealer allows banks to attract additional business in the Treasury market and raises the firm's profile, which could consequently increase business in trading and dealing in the credit markets, the Wall Street Journal reports.

"Wells Fargo is moving up the ranks in investment banking and being a primary dealer in Treasury instruments signifies their rising importance in finance," Bill Smead, CEO at Smead Capital Management, told Bloomberg. "This is important when other sources of revenue are scarce and will be one more way higher interest rates would be helpful to overall profits."

(Wells Fargo is held in Jim Cramer's charitable trust Action Alerts PLUS. See all of his holdings here.)

Separately, TheStreet Ratings team rates the stock as a "buy" with a ratings score of B.

Wells Fargo's strengths such as its revenue growth, expanding profit margins and attractive valuation levels outweigh the fact that the company has had lackluster performance in the stock itself.

You can view the full analysis from the report here: WFC

TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.