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Regulators to Wells Fargo (WFC): Shore Up Balance Sheet 'Or Else'

May 4, 2009 12:37 PM EDT
Following results from the government's bank stress test, officials have told Wells Fargo's (NYSE: WFC) Board to shore the company's balance sheet as, in the current state, the bank will "have trouble surviving a deeper recession."

Shares of Wells Fargo had been up nearly 11% today following positive comments from the Oracle at Berkshire's annual shareholder meeting.

After trading down to as low as $21.01 following the news item, Wells Fargo rallied sharply, closing the day up more than 20% to $24.25. Other financial stocks had similar price action.

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