Wells Fargo Tempted to Cut Pricing After Tax Overhaul, CFO Says

The transcript discusses the potential impact of tax reform on lending practices, focusing on interest rates and competition among banks. Analyst Chris Kotowski raises questions about how tax changes might affect loan yields and whether borrowers will benefit from lower interest rates. The conversation explores how different banks might respond to these changes, with some potentially offering pricing concessions to maintain competitiveness. The discussion also touches on the variability in competitive behavior and the implications for return on equity, as well as the dynamics of loan cycles over the coming years.

What impact does tax reform have on loan yields according to the discussion?

How might borrowers' interest rates change as a result of tax reform?

What factors could influence how long the tax benefits last for banks?

What competitive advantages might banks gain from tax reform?

What challenges do banks face in maintaining competitive returns post-tax reform?