Wells Fargo_s Record Profit_ Good Omen Or Anomaly_

I’m always on the prowl for a good “tell.” Wells Fargo preannounced blowout first-quarter earnings today that impressed Wall Street. The bank said that it earned about $3 billion — a record — during the quarter. So, are the banks back? Probably not. But the results did breathe life into the market — a market that’s desperately looking for a bottom. From the Associated Press:An important caveat, though, is that Wells Fargo is somewhat of an anomaly. The San Francisco-based bank, first of all, has simply gotten bigger — Wells Fargo roughly doubled in size after completing its acquisition of Wachovia Corp. on Jan. 1.More importantly, the company has long been among the heartiest of the big banks. Because it did not get as risky in its investments or as loose in its lending standards, loan loss rates at Wells Fargo are lower than at many of its peers.Most analysts are still predicting quarterly losses for banks like Citigroup Inc. and Morgan Stanley, which also release their results later this month. They will likely be weighed down by the souring debt and exotic credit products on their books that have gotten into trouble.Read the rest of the story here.