Wells Fargo Expecting Much Higher Interest Rates | WHAT REALLY HAPPENED


Wells Fargo Expecting Much Higher Interest Rates

By scaling back on the so-called carry trade, in which banks borrow in overnight lending markets at rates near zero and invest in higher-yielding securities, Wells Fargo aims to protect against losses when rates rise, but it forgoes the interest income it would have earned by putting on the trades.

Wells Fargo isn't giving up a billion dollars worth of interest income unless it is expecting a major spike in interest rates.

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