“We believe Wells may be a first-mover among large banks in returning to M&A. The firm’s first-quarter balance sheet was very liquid with strong capital, yet revenue starved,” KBW said in a report. “In our view, Wells Fargo could likely pursue a stock or insurance brokerage firm or specialty lenders through M&A.”
Wells Fargo is the second-largest holding in the financial ETF at about 8% of assets.
Financial Select Sector SPDR Fund
