More on Wells Fargo (WFC): The mortgage origination business doesn't disappoint, with income...


More on Wells Fargo (WFC): The mortgage origination business doesn't disappoint, with income from that division rising 53% Y/Y to $2.8B. Tier 1 capital ratio rises to 11.66% from 11.26% a year ago. Book value/share rises to 27.10 from $26.06 in Q2 and $24.13 a year ago. Shares -2.5% premarket. (PR)

From other sites
Comments (2)
  • Tony Petroski
    , contributor
    Comments (6356) | Send Message
     
    tying in to an earlier comment,

     

    "Banks are in the business of making loans and earning a spread..."

     

    Word to the wise: prepare early. Any bank holding large amounts of mortgages yielding 3.5% are going to be in trouble when inflation hits 6% (although their collateral will be getting more valuable by the month). WFC and the Fed come to mind. Fannie and Freddie, like social security are OK--they're secure because they provide social security--until they don't.
    12 Oct 2012, 08:44 AM Reply Like
  • Daniel Radakovich
    , contributor
    Comments (1017) | Send Message
     
    You don't think they understand the risks of inflation? They add an inflation premium to that imaginary 3.5% rate. On top of that, they are more than able to adjust to anticipated inflation; however, they should be okay for any unseen inflation targets that may disrupt earnings on the short term.
    15 Oct 2012, 01:37 PM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Hub
ETF Screener: Search and filter by asset class, strategy, theme, performance, yield, and much more
ETF Performance: View ETF performance across key asset classes and investing themes
ETF Investing Guide: Learn how to build and manage a well-diversified, low cost ETF portfolio
ETF Selector: An explanation of how to select and use ETFs