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Bove sees Buffett 'walking away' from Wells Fargo

Warren Buffett
David A. Grogan | CNBC

Prominent Wall Street analyst Dick Bove speculated that Warren Buffett, the largest shareholder in Wells Fargo, may be rethinking his position in the beleaguered bank.

The Rafferty Capital analyst believes it was no coincidence that while Wells Fargo CEO John Stumpf was getting grilled in front of the Senate Banking Committee, it was announced Buffett's investing deputy Todd Combs was joining the JPMorgan board.

"During these hearings it was published that Warren Buffett is placing one of his key lieutenants on the Board on JPMorgan even though his companies do not own stock in that bank. He is clearly walking away from Wells Fargo," Bove wrote in a note published just after the hearing ended.

Berkshire did not respond to CNBC for a comment on Combs' addition to JPMorgan's board. The firm owns 9.5 percent of Wells Fargo's outstanding shares, according to FactSet, a mighty large position to unload and an uncharacteristic move for an investor like Buffett, whose favorite holding period is "forever."

Here's why else investors should fade the rise in Wells Fargo shares Tuesday, according to Bove: