Railcars become a weak spot at some big banks
Banks such as Wells Fargo (WFC +1%), Citigroup (C +1.2%), PNC Financial Services Group (PNC +0.4%), and CIT Group (CIT -0.2%) own hundreds of thousands of railcars that carry all kinds of commodities across North America, the Wall Street Journal reports.
While banks shed many of their ancillary businesses after the financial crisis, many kept their railcars, leasing them and getting a steady stream of revenue.
But flagging railroad demand and changes in commodity markets have undermined that strategy.