PE funds exit boots Wells Fargo’s capital ratio
Two billion dollars of investment sales in Q3 added 14bp to CET1
Wells Fargo netted a 14-basis-point gain in its Common Equity Tier 1 (CET1) capital ratio in the third quarter, following the liquidation of private equity stakes that would otherwise remain ineligible for inclusion in regulatory capital.
The bank sold investments with a fair value of around $2 billion in two Norwest funds, turning the associated goodwill and intangible exposure, which are subject to prudential deduction from regulatory capital, into CET1-eligible assets.
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