Wells Fargo Quietly Sells $600m Subprime Loans

Wells Fargo & Company (WFC) has sold $600 million in mostly non-performing subprime loans to Irvine-based Arch Bay Capital. The loans have been sold for 35 cents on the dollar, which is nearly double of what most hedge funds were offering.

Most of the subprime loans sold were originated by Accredited Home Loans and NovaStar Financial. The sale was a very discreet one. The secrecy of this transaction is indicative of lenders’ preference to seek private transactions to offload bad assets from their balance sheets rather than resort to a government-sponsored program.

Wells Fargo & Company is the fourth largest (in terms of assets) financial services company in the U.S., with $1.3 trillion in assets and nearly $800 million in deposits, providing retail and wholesale banking, mortgage banking, consumer finance, equipment leasing, insurance brokerage, agricultural finance, securities brokerage, trust, investment banking and other financial services.

WFC is scheduled to release its 2Q09 financial results before market open on July 22, 2009 followed by a conference call. Wells Fargo’s large commercial and residential mortgage portfolios inherited from Wachovia are expected to continue to weaken in the coming quarters, which may lead to higher than expected losses. Ahead of its 2Q09 financial results, we are maintaining our Hold recommendation on the shares.

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Comment by mec54

2009-07-28 08:06:23

I’M SURE YOU KNOW THAT

2005 & 2006 Wells Fargo JOHN STUMPF & HAROLD ATKINS ‘DON’T ENGAGE IN relations with sub-prime loans’ YET HAVE OVER $6Billion as the [SERIVCER]

Structured Asset Securities Co.

Look for your own 10K on line its easy!

Mine is

S.A.S.C.O. 2006-WF3

Wells Fargo got so bold as to name them by quarter!

See Attorney General Brown CA suing Wells Fargo Bank NA [SERVICER] CORPORTATE HEADQUARTERS, WELLS FARGO & CO.
FOR $1.5BILLION BECAUSE THE EMPLOYEES MISREPRESENTED THE
PRODUCT THEY PUT THE CUSTOMER INTO AN AGREEMENT WITH.

DOES THAT SOUND FAMILIAR TO YOU?

ME TOO. I WAS FURLED INTO A SUB PRIME
ITS A FAULTY PRODUCT AS DESIGNED AND THE MANUFACTURER WILL BE SUED FOR PLACING A DEFECTIVE PRODUCT IN THE MARKETPLACE THAT HARMS PEOPLE AND PROPERTY.

RESPECTFULLY,
MARY COCHRANE

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