tshk1221

Wells Fargo: Being Bearish Paid Today

Dear Johnnie,

It could be your great career opportunity if you get a firm position with Wells Fargo. Probably, it is the most highly regarded bank in US with an affluent historical background. The bank is well known for being quite conservative in its lending. Well, actually, I heard they apply a lending concept known as "reverse lending", which basically means lending more aggressively in times of like this and lending conservatively during bubble periods like the last 5 years. No wonder Wells Fargo stands out among the peers now.

The real problem with banks is that when banks try to stay healthy and lean by doing only quality loans, they cannot grow by volume and cannot satisfy directors and shareholders. When banks try to achieve more volume by gaining weight through doing riskier loans to satisfy directors and shareholders, that's the time when real risks kick in.

I guess that's the most daunting task bankers in the US must solve to preserve the US financial system and prevent any future financial crisis.

On Dec 01 07:18 PM JohnniePhenom wrote:

> I recently had the opportunity to be offered a position with Wells
> Fargo. Through the recruitment and interviewing process I was very
> interested in learning how they planned to be profitable in such
> an environment, and thus what the positives and future potential
> of taking the position with the company would be. No one would want
> to be hired into a failing company. What they could tell me is that
> basically they were more conservative and protective with the subprime
> lending they took part in. with WFC you didn't see massive surges
> in profits like with other banks, and you (until recently) haven't
> seen a great decrease in their value. With the aquisition of Wachovia
> they've increased they're business footprint and will be able to
> off a more diversified portfolio of products and services to existing
> and potential clients. I see JPM, BAC, and WFC emerging as some of,
> if not the best, banks when we come out of the other side of this
> crisis. Maybe w/ WFC my opinion is some what biased by my new association
> w/ the company, but I wouldn't have seeked employment w/ them if
> I did not see them emerging on top of the banking industry at the
> end of all of this...down the road people will look back and see
> that certain financial companies were among the best investments
> at the bottom IMHO