September 15, 2008 / 4:43 PM / 11 years ago

UPDATE 1-Wells Fargo to benefit from Lehman's bankruptcy: Bove

(Recasts, adds details)

Sept 15 (Reuters) - Wells Fargo (WFC.N), the fifth largest U.S. bank, will benefit from Lehman’s bankruptcy filing and take advantage of the acquisition opportunities being created in the market, veteran banking analyst Richard Bove said.

Wells Fargo does not lend very much money to large corporations so it is not believed to have a stake in Lehman Brothers Holdings’ LEH.N troubles directly, Ladenburg Thalmann’s Bove said.

Also, it does not have a large position in the derivatives market, on a relative basis, so its counter-party risk is limited, said Bove, who maintained his “buy” rating on the stock.

While loan losses are well above comfortable levels in some of the bank’s portfolios, the opportunities to grow the business are offsetting the problems, he said. (Reporting by Sweta Singh in Bangalore; Editing by Vinu Pilakkott)

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