Wells Fargo & Co., the largest U.S. home lender, sought to assure investors its other businesses can make up for flagging mortgage sales after posting a 13 percent gain in profit that partly relied on tapping loan-loss reserves.
Wells Fargo & Co., the largest U.S. home lender, said second-quarter profit climbed 19 percent as the bank clamped down on expenses. Results beat analysts’ estimates, and the shares rose 2 percent in New York trading.
Bill Gross , who runs the world’s biggest bond fund at Pacific Investment Management Co., said the U.S. should consider “full nationalization” of the mortgage- finance system as the Obama administration plots the revival of a market that was at the center of the 2008 credit crisis.
U.S. lenders including Bank of America Corp. still face years of litigation and billions of dollars in liabilities tied to the housing collapse after agreeing to settle a probe of abusive foreclosure practices.