Eli55

Wells Fargo Lays Bear Trap on Wall Street

A large position in “Brady Bonds” whose value declined precipitously clobbered Wells Fargo a number of years ago. With patience the bond's price firmed and they became whole (while possibly suffering opportunity costs). Wells is taking a proactive posture on riding out the cyclical housing/mortgage market, working closely with delinquent payers, which was not done in previous cycles. While long term they again may suffer opportunity costs they will lose little or no money on their mortgages.

Their stores (branches) are growing by their clients using more of the stores eight product lines (5+ of 8 for individuals and 6+ of 8 businesses). They are incrementally buying bank companies and increasing sales.

They have no known off the book loans, derivatives, CDOS, CMOS, SIVS or what have you, i.e. Enron, Citigroup. They did not make a market in these instruments, as purportedly did JPM.

Wells Fargo is a well-run money store.

Why It's Time to Invest in Domestic Banks

Enter your comment hereA large position in “Brady Bonds” whose value declined precipitously clobbered Wells Fargo a number of years ago. With patience the bond's price firmed and they became whole (may have suffered opportunity costs). Wells is taking a proactive posture on riding out the cyclical housing/mortgage market, working closely with delinquent payers, which was not done in previous cycles. While long term they again may suffer opportunity costs they will lose little or no money on their mortgages.

Their stores (branches) are growing by their clients using more of their eight product lines (5+ of 8 for individuals and 6+ of 8 businesses). They are incrementally buying bank companies and increasing sales.

They have no off the book loans, derivatives, CDOS, CMOS, SIVS or what have you, i.e. Enron, Citigroup. They did not make a market in these instruments, as purportedly did JPM.

Wells Fargo is a well-run money store.