These banks are solid and cheap. But investors should be cautious

A combination file photo shows Wells Fargo, Citibank, Morgan Stanley, JPMorgan Chase, Bank of America and Goldman Sachs.


With the banking sector facing a myriad of crosscurrents — including stricter government regulations, higher interest rates and scrutiny from U.S. rating agencies — financial stocks are looking cheap. But the Club is exercising caution when it comes to our two bank names: Wells Fargo (WFC) and Morgan Stanley (MS).