Here's what we can know and can fairly assume about WFC after today's announcement by the Fed. >>> Trade WFC stock on T2BF using $100,000. Fees apply. 1. In the Fed's report released today, WFC compared very similar on virtually every major metric to BAC (a bank that has a market cap around $100 billiion higher than WFC). WFC has strong credit quality and plenty of capital to weather the storm. 2. However, Fed will not let them raise dividend or perform buybacks about trailing average earnings per quarter over past year. This certainly means no significant increase to either until after March of '21 due to the impact reserves, remediations, and restructuring charges had on trailing earnings. 3. On the other hand, the stress tests do confirm the capital strength and liquidity position of WFC, and help investors start to understand a reasonable timeframe for increase in dividends and buybacks, and after all it is a forward looking market. 4. It is not unreasonable to use the most recent quarter as a starting point for earnings assumptions into the next year in my opinion. When normalizing for restructurings and customer remediations, WFC has a run rate earnings power of about $0.75 per quarter. We already know of another restructuring charge in Q1 telegraphed by the CEO at a recent presentation. However, there is a decent likelihood that this will be offset by reserve releases at some point in '21, particularly if one more congressional relief package comes and vaccine rollout continues apace. This leads me to guess '21 earnings in a wide range of $2.50 to $3.50, with the unknowns being size of reserve releases, restructuring charges, trajectory of yields on say the 10 year treasury, loan growth, fee stability, etc. 5. Given that earnings trajectory into next year, we are almost certain to begin seeing dividend boosts and share repurchases at the end of Q2 2021 as that is when they will lap past the 2 weakest quarters in the trailing 12 month calculations. It would not be unreasonable to expect a dividend of at least $.0.30 announced by end of Q2 next year. (again something to look forward to, as that would be at least a 4% yield). 6. With stronger trajectory in economic recovery, hiring, yields, etc possible by early spring, Fed may drop the restrictions altogether by March or June quarter, and that would allow significant dividends and sizable repurchases by mid year next year. In summary, I expect WFC to have a similar distribution capacity as other large banks by the second half of next year, especially placed in context of respective market caps. The question is - how much of a discount should WFC trade at to its closest peers if there is only a 6 month lag until they have similar authorization on the shareholder distribution front? For my money, I think that impatience on this front may be presenting continuing discount on WFC that will not last forever, even though it's been a rough decade for the stock and a rough 4-5 years for the company. And of course the wild card is - at what point will asset cap be lifted, which would obviously skew everything estimated here somewhat higher if it were to be anytime this coming year. I believe we are no more than 2 years away from something approximating $6 e.p.s. >>> Trade WFC stock on T2BF using $100,000. Fees apply.It sounds outlandish here, but with asset cap lifted and steepening yield curve (even at zero funds rate), I don't have to stretch possibilities very far to see a $75 stock within 3 years. I know my comments tend towards the longer side, so to anyone reading this far I say thank you and welcome any discussion.