Fargo - The Urban Version

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I have to admit that Wells Fargo has not made it (yet) to the Balcony charts, since its management has (so far) refrained from demonstrating the ample stupidity shown by its counterparts elsewhere (operative words in parentheses). Having said that however, a series of attention-grabbing Bloomberg headlines over the past couple of months could not go unnoticed:

- Firstly, on March 5, analysts look at the Bank's loan portfolio and are scared ***tless.

- Then, on April 9, the Bank looks at its own portfolio and decides to stop marking it to market, presumably to avoid further horrifying people. As a result, it posts record Q1 results and the stock surges 31%...

- Then, on May 4, investing legend* W. Buffett says that WF is a "fabulous Bank, destined to prosper no matter what". As expected the stock rises a further 24% bringing its return for the past two months to... 200% (at this stage the scary feeling is almost entirely gone replaced by a pure comedic element).

- Then, all of a sudden, yesterday, horror returns with a vengeance when rumors come out that the Bank will need $15 bln new capital as a result of its stress test.

13 years ago the Coen brothers became famous for mixing the terrifyingly absurd with the absurdly stupid in their unique Fargo. It appears that, once again, life is imitating art, and the material for the sequel (set in urban Wall Street this time), is all ready.

*both meanings apply