Wells Fargo CEO John Stumpf's Finance Industry Outlook for 2014
Interest rates need to rise back to more normal levels, the bank chief says
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What forces will be affecting the bank’s business in 2014?
We have issues [with] low interest rates, which have a certain impact on our revenues and our margins. I would love to have more loans on our books. For decades, for every dollar of deposit, we would have a dollar of loan. Today we have a dollar of deposit and 80¢ of loan. So we have a couple hundred billion sitting on deposit with the Fed earning us next to nothing. We would love to lend that money out. But that’s the result of customers, both corporations and individuals, deleveraging.