New York, Jan 16, 2026, 13:39 EST — Regular session
- Wells Fargo shares up about 0.4% at $89.35 in afternoon trade
- Bank has been in the debt market with fresh SEC pricing supplements for long-dated notes
- Investors are focused on the 2026 net interest income outlook and the political fight over a proposed 10% credit-card rate cap
Wells Fargo & Co shares rose about 0.4% to $89.35 on Friday afternoon, steadying after a rough midweek slide as traders weighed the bank’s outlook against a sour mood across financials.
Lenders have been rattled by talk of a one-year cap of 10% on credit card interest rates, a proposal investors fear could squeeze one of the industry’s highest-margin products. U.S. markets are closed on Monday for the Martin Luther King Jr. holiday, compressing the next trading week and keeping positioning skittish. 1
In slides for its fourth-quarter call, Wells Fargo said it expects 2026 net interest income — the spread between what it earns on loans and pays on deposits — to run about $50 billion, plus or minus, with assumptions that include two to three Fed rate cuts. The bank also pegged 2026 expenses at about $55.7 billion as it pushes efficiency work while spending more on technology and other investments. 2
The stock is still near Wednesday’s close, when it fell 4.6% after the bank booked $612 million in severance charges and missed profit estimates. CFO Mike Santomassimo warned the proposed credit-card cap would make lenders pull back, urging “continued careful consideration of all proposals … to make sure we get to the right outcomes.” “Beyond this issue, there is still a lot of good (news) as costs are under control and loan quality remains high,” said Brian Mulberry, senior client portfolio manager at Zacks Investment Management. 3
A prospectus supplement filed with the U.S. Securities and Exchange Commission showed Wells Fargo agreed to sell $2 billion of fixed-to-floating rate notes that pay 5.433% until 2046, then reset against compounded SOFR, a U.S. overnight benchmark rate, plus 123 basis points (hundredths of a percentage point). The notes mature in 2047 and are expected to settle on Jan. 23. 4
Wells Fargo said it earned $5.36 billion, or $1.62 per share, in the fourth quarter on revenue of $21.29 billion, and repurchased $5.0 billion of common stock. Chief executive Charlie Scharf said the quarter showed “strong financial performance,” as the bank pointed to the removal of the Federal Reserve’s asset cap and the termination of multiple consent orders, which are formal regulatory enforcement actions. 5
Management’s pitch is simple: a cleaner balance sheet and tighter controls should free up growth, and the cost base has to keep bending lower to prove it. That is easier to say than do when competition for deposits flares up and technology bills keep climbing.
Credit quality is the other line investors are watching. Wells Fargo has flagged pressure points in commercial real estate, with office loans still a recurring topic, even as the bank says most customers are holding up and it is watching for early signs of weakness.
The rate-cap debate is now the wild card. Wells Fargo has been trying to expand card products and fee businesses, but the political math around consumer credit is shifting fast and headlines can move the group.
If the proposal stalls, attention likely swings back to the usual bank levers: where interest rates settle, how quickly deposit costs fall, and whether loan demand holds up in commercial and auto. If the cap gains traction, lenders face a messier downside case — weaker card economics, tighter credit, and more noise around earnings guidance.
Traders will be watching Tuesday’s reopen after the holiday, along with the next wave of bank results, for signals on how seriously lenders are treating the rate-cap threat. Wells Fargo’s scheduled Jan. 23 settlement for its latest note sale is another near-term date on the calendar as investors track funding costs into the rest of earnings season.
