https://www.risk.net/investing/markets/7845011/inside-wells-fargos-bid-to-take-on-big-fx-players
Why?
According to Zoltan: "FX swaps are off balance sheet, so they won’t interfere with Wells Fargo’s asset growth ban if the ban is still in place around year-end, and Wells Fargo
doesn’t have G-SIB constraints like others do."
But like any line of business, there isn't anything this bank has touched that it hasn't fk-ed up: https://www.wsj.com/articles/u-s-investigating-foreign-exchange-trading-at-wells-fargo-1509118628
Most GSIB banks are retreating from foreign exchange business because of KYC, AML, currency risk and foreign market exposures....but not Wells Fargo.
Smells like a desperate move for income....
- or maybe we are re-entering the foreign money laundering business again?
https://www.acfcs.org/wells-fargo-to-pay-3-billion-to-doj-sec-to-resolve-criminal-civil-charges-tied-to-fake-accounts-scandal/