Wells Fargo is toast?

So says Teri Buhl, and others. Interesting if true (and I’ve heard this from a number of other sources) because, even if it’s their commercial loan portfolio that brings them down, they hold a ton of mortgages on Greenwich residents. Work-outs will be even more difficult if the person in a decision making role is a bankruptcy trustee.

9 Comments

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9 responses to “Wells Fargo is toast?

  1. Cos Cobber

    I can tell you that in the small little world I operate in Wachovia repeatedly was the most aggressive player. They did alot of deals at prices that & terms that baffled us. Rumor is, the same boys, after sitting idle for a year, have the green light to do the same under the Wells banner. We shall see.

  2. Retired IB'er

    I think you may have gotten the sentiment correct, but not the substance with your title.

    I think it more accurate to say the US taxpayer gets another helping of “toast” as they will be there to subsidize any troubles encountered by WFC.

    WFC was “too big to fail” before the government made it even bigger with the acquisition of Wachovia.

  3. Anonymous

    So those crafty tellers at Wells duped allegedly value and risk-conscious Warren?

  4. shoeless

    Writing CDS on your own securitized portfolio is a great idea, until it’s not. This will wind up being the latter, in spectacular fashion.

  5. The Duke of Deceptiom

    The Duke is glad he left Wachovia for B of A last year. Or is he?

    But really Chris, any comment on Ernie (nutbag) Anastos saying “keep f*^%ing that chiken”on Fox 5 the other night?

  6. These guys ate toxic Wachovia, who prior to that, ate toxic Golden West and its billions in Pick-a-Pay lotto tickets.

    And, let’s not even get into the billions in residential piggyback second liens these guys did that were virtually unsecured the minute the ink dried on the closing docs.

    The cherry on the sundae? WFC now has a battery of lawyers who do nothing but help the company file suit against itself, as they have gazillions of foreclosures going in which they hold the first and the second lien (so yes, they name themselves as defendants when the lis pendens are filed).

    Does this sound like a solvent bank to you?

  7. polly pavel

    I am sure that this will be very helpful to the Greenwich and the JUMBO market….

    http://online.wsj.com/article/SB125324292666522101.html#mod=WSJ_hps_LEFTWhatsNews

  8. shoeless

    Polly,

    One of the many problems with this idea is the fact that the FED is totally owned at operated by the banking industry. While I’m opposed in general to government dictum about compensation, I suppose given the fact that we, the taxpayers, are propping up many of these zombie institutions, there should be some restriction on how much of our money winds up in their pockets. However, thinkng the FED is going to act as a traffic cop in this instance is pure folly.

  9. Anonymous

    If they are going under, they are doing it in style. A 737, registered to Wells Fargo Northwest, has been busy flying the last couple of days. I hear money stashes nicely in Nice this time of year.

    Date Type Origin Destination Departure Arrival
    18-Sep-2009 B737/W London Luton (EGGW / LTN) Westchester County (KHPN) 10:23AM GMT 01:53PM EDT
    16-Sep-2009 B737/Q Bradley Intl (KBDL) Nice Cote d’Azur (LFMN / NCE) 11:31AM EDT
    15-Sep-2009 B737/L Newark Liberty Intl (KEWR) Bradley Intl (KBDL) 08:28PM EDT 08:51PM EDT
    14-Sep-2009 B737/W London Heathrow (EGLL / LHR) Newark Liberty Intl (KEWR) 01:21PM BST 03:48PM EDT