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Analyst: Wells Fargo profits ‘unsustainable’

The Wells Fargo stagecoach hit a bump Wednesday afternoon, hours after announcing a record profit. The bank’s stock dragged down the market after an influential and typically bullish analyst described its profits as “unsustainable.”

The Wells Fargo stagecoach hit a bump Wednesday afternoon, hours after announcing a record profit.

The bank’s stock dragged down the market after an influential and typically bullish analyst described its profits as “unsustainable.”

Richard Bove of Rochdale Securities also downgraded his rating on Wells Fargo from “neutral” to “sell.” The improvement in Wells Fargo’s mortgage business stemmed from a hedging profit and lower taxes.

The “most disturbing” part is Wells Fargo’s loan losses appear to be accelerating, Bove said. The number of assets no longer collecting interest climbed 28 percent to $23.5 billion, Bloomberg reported.