Chorniki

Wells-Wachovia: Good for Everybody but Citi

As a retired real estate broker, I can remember when, if a loan could not be placed anywhere, it could be placed at World Savings. Wachovia bought out World and now Wells Fargo has bought out Wachovia. All
those dodgy loans will cause WFC more than a minor headache. A further ten per cent drop in real estate prices, perhaps more, is a given.
Extending the time to 240 days before declaration of default won't help either. Option ARM loans often did not even require the payment of the
monthly interest. World Savings was specially good at devising creative ways to qualify dodgy borrowers chasing the American dream.
The jingle mail should be heavy in the coming months as unemployment numbers gather steam.
Disclosure: Own synthetic shorts in WFC.

Wells Fargo Is Not Interested in Others' Junk...Surprised?

Some reporter please ask Mr Stumpf whether the securities in the "hold
to maturity" portfolio are the same as the securities in the "for sale portfolio", whether the valuations are the same for like securities, and
what is the bank's rationale for the difference in valuations for like securities. That is 0.22 cents in the "held for sale" portfolio and same
securities valued in the "held to maturity" portfolio valued at $1.00.
The disingenuosness of his reply should be hilarious.