Leading market positions in numerous U.S. banking businesses Longstanding, very strong deposit franchise Solid earnings generation with substantial contribution from fee income Loan asset quality that should remain steady, although the net charge-off rate is likely at a cyclical low Prolonged reputational, legal, and regulatory issues following probes into various business lines Governance, compliance, and operational risk procedures that need improvement Asset cap imposed as part of a cease and desist consent order from the Federal Reserve Capital levels that are likely to decline despite reputational and legal issues Our negative outlook reflects the possibility that we could lower our ratings on Wells' holding company over the next two years. This could happen if: Wells does not show timely progress
