I should know

Credit Markets Take a Beating

Wells Fargo’s Chairman, Dick Kovacevich, was fit to be tied at the meeting with Bernanke; he did NOT want to sign the documents giving the Feds any ownership or “say” in Wells Fargo & Co, he did NOT want the money.

It took the rest of the CEOs in attendance, especially Ken Lewis, to convince him to “go along” with the plan “for the good of others”. He was told that if he decided to “op-out” he would look like he was “un American”. He and the others were told by Bernanke that “they had little to say about it”, if they didn’t take the money and sign the agreement THAT DAY, they would suffer the consequences (in so many words). Treasury Secretary Henry Paulson basically told the bank CEOs that they had to accept the government stock purchases for the good of the U.S. economy.

Yes, Wells Fargo & Co stock is down and yes, they will have more loan losses in the future, but far less as a percentage than 99% of the others. Wells is a conservative lender and did NO option ARMs on their own. They certainly obtained some heavy baggage with their Wachovia purchase, but they also got hundreds of millions in tax write-offs that they can use for years to come. They are now the nation’s biggest bank as far as bank branches. They are second in total assets and first in market cap. Short term, 12 to 18 months, their stock is going to be in the toilet, long term, they are the “bank” to own.

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On Jan 14 03:16 PM curbs-in wrote:


> John... You are long WFC? As I recall they were the bank that made statements in October that they were rock solid, then turned around and took the taxpayers money. Is that the same bank? Isn't that considered lying to investors? If they were so strong, why didn't they turn down TARP funds?

How Will We Finance the MBS Fix?

Your 957 word, 23 paragraph rhetorical oratory could have been summed up in a few sentences.

The government’s proposal to buy up MBS has substantial unresolved issues. There is plenty of excessive work in servicing toxic loans versus well performing loans. The government is ill equipped to perform this task and customarily boggles these type of tasks. A small number of major banks and mortgage servicing companies are qualified and equipped to service the MBS purchased by the Feds such as Chase (JPM), Bank of America (BAC), and Wells Fargo (WFC). There may be a buying opportunity with one or more of these companies.


Anthony, your picture, or mug shot looks like is was taken in the exercise yard of Attica Correctional Facility. The fact that you worked in marketing, originating, processing, closing, secondary markets, and even foreclosures does NOT make you a “subject matter expert”. A blind, one-armed monkey could and probably does do those small tasks on a daily basis.

SHEESH!

Three Financial Stocks Worth Holding

I like Wells and JP Morgan Chase. B of A bit-off a little more than they can chew, especially with Countrywide. They could of had the "parts' of the company they wanted and little, if any, of the toxic loans. AND, they could of had it for pennies.

A Dual Strategy to Balance Banking Sector Trade

Your quote: "Knowing other banks will follow suit, JPM has taken a proactive lead to weaken their competitors. BofA and Wells have weaker balance sheets and more pressing needs. Both these companies are undertaking transformative mergers outside of their areas of expertise."

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I would disagree with the above statement. Wells Fargo & Co has a great record for their merger and integration of other banks and financial institutions. When Norwest Bank merged with Wells Fargo, Norwest was the survivor. That merger is considered the best and smoothest major bank merger in history, masterminded by Dick Kovacevich who was CEO of Norwest at the time. He is still onboard and this merger is his baby. I DON’T disagree that with the acquisition of Wachovia, Wells Fargo took on a bunch of stinky loans originated by Great Western; now they are going to have to do something about them. However, I think they have planned a $71 billion write down on these loans. No bank is immune from meltdown in this volatile market, but Wells Fargo is up 12% from this day last year, while at the same time, the Dow is down 27%.

Increased Government Investment in Banks?

mik123
Nov 04 08:47 AM

If TARP states the money can not be used for acquisitions and can only be used for lending as Barney Frank stated Friday, I don't see how there will be regulatory approval on the PNC -Nat City deal. That's probably why you haven't heard of any other deals. National City can stand alone and save thousands of jobs. TARP was passed to help National City. Blah, blah, blah. . .

Call Latourette, Barney Frank, Sen Shumer and your local house and senate representatives and demand National Citys share of TARP. Blah, blah, blah. . .

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YEA, Barney Frank, there’s a pillar of credibility and knowledge. I think he is one of the miscreants that got us into this mess. Yea, call Barney, call bleeding-heart Shumer, see what those two nincompoops can do for you.

Sorry about the National City stocks you bought on the “recommendation” of 10 or so nitwits.

The Trouble with Rescues and Stimulus

Wells Fargo’s Chairman, Dick Kovacevich, was fit to be tied at the meeting with Bernanke; he did NOT want to sign the documents giving the Feds any ownership or “say” in Wells Fargo & Co, he did NOT want the money.

It took the rest of the CEO in attendance, especially Ken Lewis, to convince him to “go along” with the plan “for the good of others”. He was told that if he decided to “op-out” he would look like he was “un American”. He and the others were told by Bernanke that “they had little to say about it”, if they didn’t take the money and sign the agreement THAT DAY, they would suffer the consequences (in so many words). Treasury Secretary Henry Paulson basically told the bank CEOs that they had to accept the government stock purchases for the good of the U.S. economy.

Worrying About Large-Deposit Bank Runs

I pulled all of my money out of my three banks yesterday. Now I have to find a safe, secure place to stash this $145.95. Any suggestions??

Investing in the Housing Crisis Aftermath: Stock Picks and Pans

woodchuck,
You comments are right on target. They also gave me a good laugh this morning.


Signed,
Sir Ramjam Delilah Funkyboogaloo-Smythe
Chief Academic Officer(Provost)
Chulafinee City Community College

Investing in the Housing Crisis Aftermath: Stock Picks and Pans

woodchuck,
You comments are right on target. They also gave me a good laugh this morning.


Signed,
Sir Ramjam Delilah Funkyboogaloo-Smythe
Chief Academic Officer(Provost)
Chulafinee City Community College

Writedowns and Capital Raised by Financial Firms

You’ve got to buy when everybody says "sell", and sell when the crowds say "buy". While watching the stock market and getting caught up in the dramatic rise in price and the buying frenzy, I asked my stock broker about Apple stock. He said it was a great buy so I bought 500 shares on 9/18/06 at $73.81 each or a total of $36,905. On May 14th 2007 my broker called and said the stock was up to $109.62, did I want to buy some more. NO way I said, too costly. Through Spring, Summer, and Fall of 2007 Apple stock was going through the roof; it was skyrocketing, it was Wall Street’s new favorite stock. I was really upset with myself because I felt like this express train to financial nirvana was leaving without me. I got caught-up in the herd mentality (sounds a little like the real estate market, doesn’t it?). On December 11th 2007 I frantically called my stock broker and told him to buy 1000 shares; I didn’t care what the price was, I wasn’t going to be left out of this market, these rising prices. The price was $194.75. In February and early March I was tired of the roller coaster ride and was ready to dump everything at about $120 a share; more herd mentality. I still own the stock, I like the company. Wells Fargo is a GREAT, well-run company that’s been around for 156 years. They have a well known and well respected brand name as well know world-wide as Coke and McDonalds. Sure, they are getting beat-up and will suffer additional losses due to the credit and real estate meltdown, but they will be left standing and strong, ready to gain market share from their competitors. I think Warren Buffet is its biggest investor and Wells Fargo & Co is his third most popular stock. I own some WFC stock and I’m not happy about its price reduction, but like Warren Buffet, I’m in for the long haul. When asked “When is the best time to sell a stock”, Warren Buffet answered “Never”.

Bear's Gone - Is Lehman Next?

Lehman has stying power; yes, they made some BIg MBS mistakes but have written down the value by almost 100%. They'll continue to get slapped around but will survive this and be stronger for it in '09 and going forward.