*** Credit specialists at Moody's.......>

MARKET TALK: *** Credit specialists at Moody's Investor Service comment on the

Federal Reserve's growth cap on Wells Fargo assets to $1.95T last Friday, a

motion by exiting Fed Chair Janet Yellen. Moody's calls the Fed sanctions

"credit negative" while threatening "to increase client attrition and undermine

its franchise, especially since competitors will likely use Wells Fargo's

hobbled status to attract clients for themselves. The Fed's strong remediation

actions leave little doubt that further improvement is required." On the

positive side of things, Moody's notes "capital ratios should improve as asset

size remains capped at 2017 levels, while the bank builds capital through

retained earnings. We expect profitability to be satisfactory, assisted by a

lower tax rate and prospects of higher interest rates. The recent enhancement of

the risk function should protect its asset quality. Management has taken steps

to reduce risk, such as shrinking the auto loan portfolio by 13% in 2017, amid

weakness in that sector. A flat balance sheet and regulatory liquidity

requirements also help defend Wells Fargo's strong liquidity."