Wells Fargo Exposing Itself To Potential Losses For Near-Term Gains By Expanding Auto Business

Wells Fargo is looking to grow its auto lending business again, after spending the last two years shrinking the unit. Wells Fargo slashed its auto loan portfolio over 2016-2017 primarily due to a sharp increase in charge-off rates from an increase in sub-prime auto lending. The U.S. banking giant continued to divest its auto loans early this year with the sale of its auto finance business in Puerto Rico (Reliable Financial Services) to Banco Popular de Puerto Rico. READ MORE