patrick.net

http://beta.fool.com/chrismarasco/2012/08/31/iii/10637/?ticker=BAC&source=eogyholnk0000001

The major takeaway from this chart is that most banks are earning less than their cost of capital. JPMorgan isn’t faring so bad, but Wells Fargo is absolutely killings its competitors, earning a return on equity that is 27% higher than second-place JPMorgan and 183% higher than flailing Morgan Stanley. And Citigroup, Bank of America, and Goldman are all returning about the same.

Part of this spread is because Wells Fargo is adept at lending around interest rate volatility, as half of its revenues come from interest rate margins. This competitive advantage makes Wells Fargo a great bet in both high and low interest rate environments.

#environment