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3:57 PM Stick Save By Wells Fargo: Bank Promises To Repay TARP.... Soon

Tyler Durden's picture




 

When the market is about to close down big, on the highest volume day since June, and you really need a stick save, WFC comes out with the following garbage:

Wells Fargo (NYSE: WFC) CEO John Stumpf says bank will pay back TARP soon and that it will not need to raise equity to do this.

With 2 more minutes of trading, it is unclear if this totally irrelevant disclosure will manage to turn the market's overall ugly mood.

 

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Tue, 09/01/2009 - 16:01 | 55354 AnonymousMonetarist
AnonymousMonetarist's picture

Smells Fargo.

Tue, 09/01/2009 - 16:02 | 55355 somethingisrotten
somethingisrotten's picture

The Cabal continues to pull stops to try to save this mirage.

Wed, 09/02/2009 - 01:16 | 55358 Eduardo
Eduardo's picture

It is also probably related to the big bank fail rumor I readed on

pragcap...

http://pragcap.com/unfounded-rumor-of-the-day-large-bank-failure

... they seem to be trying to shake that off. Even though the bank of the rumor seems to be an European bank.

Tue, 09/01/2009 - 16:03 | 55359 rD2.0
rD2.0's picture

where did all this volume come from.. specially because Flash orders were banned

Tue, 09/01/2009 - 16:04 | 55360 bchbum
bchbum's picture

Remember back in march how wells cfo started this rally by saying they had their best qtr ever due to all the refi business?  Is this the best they can do?  Day late and a dollar (or two) short.

Tue, 09/01/2009 - 16:08 | 55369 Kaiser Soze
Kaiser Soze's picture

I will never forget that day. Wells Fargo pre-releases its "record earnings" and the entire bank index went up about 7%. I lost a shit load of money that day. Wells Fargo along with the other "clearing house" banks are going down hard when this ponzi scheme blows up in their faces.

 

Tue, 09/01/2009 - 21:44 | 55625 Audicar (not verified)
Wed, 09/02/2009 - 00:47 | 55860 Fish Gone Bad
Fish Gone Bad's picture

I got pantsed that day.

Tue, 09/01/2009 - 16:04 | 55363 Gilgamesh
Gilgamesh's picture

Exact words that went through my head on that $.50 pop.  Then I thought that it was TOO SOON.  Learn how to run out the clock!

Tue, 09/01/2009 - 16:06 | 55365 Deficient Market
Deficient Market's picture

I guess almost $6B in POMO isn't enough anymore for stick-saves, so they have to resort to such acts of desperation. It was even very poorly coordinated as a 1-2 punch with BAC making their announcement in the morning... Maybe they're just saving the actual cash for after-hours, we'll see, doesn't seem to be flowing in yet...

Tue, 09/01/2009 - 16:11 | 55373 Gilgamesh
Gilgamesh's picture

They both got $.50 pops out of it; BAC just got hers from the pre-market lows.

Tue, 09/01/2009 - 16:21 | 55393 Deficient Market
Deficient Market's picture

Ahh, now I see it, really puny compared to the standards set this summer. Maybe we'll hear a lot more of these from the other banks overnight.

Oh well, hope they still sold into it so that they could pay us back (I know, I guess I'm just naive and still believe)

Tue, 09/01/2009 - 16:11 | 55375 TumblingDice
TumblingDice's picture

Stupid Wells Fargo dont they know we are reflating the hinderberg like there no tomorrow. Holding debt is good in this environment, because like magic, in a year it will be much easier to pay it off. Thats how inflation works. Borrow, buy stuff... inflation... sell stuff for higher price, pay off debt and have some left over. Theyre doing it all wrong!

Tue, 09/01/2009 - 16:39 | 55428 chunkylover42
chunkylover42's picture

you've almost got it.  the answer is:

 

issue debt (guaranteed by the fed gov), repay TARP obligation, wait for inflation to pay back debt in cheaper dollars.

Tue, 09/01/2009 - 17:08 | 55465 Anonymous
Anonymous's picture

Wouldn't the sale of that much debt (bonds) be obvious to those looking at the balance sheet? Have they actually issued an amount that could plausibly pay back the tarp amount?

Tue, 09/01/2009 - 18:55 | 55574 Anonymous
Anonymous's picture

The only shot they have at paying off is if the govt changes the rules for them on the capital ratios

Tue, 09/01/2009 - 21:44 | 55620 Audicar (not verified)
Audicar's picture

In fact, I think that he probably threatened something in case the fed went further in its debt monitizing.
good articles; good articles 4 slow news day ..http://www..
hat tip: finance news & finance opinions

Tue, 09/01/2009 - 16:11 | 55376 digalert
digalert's picture

Too close to call, not enough to move the market, darn.

Tue, 09/01/2009 - 16:11 | 55377 walküre
walküre's picture

Sell off, sell off, sell off.

Investors that made good on their losses from last year's crap shoot are not going to see this happen to them again.

If anyone recovered from their losses even at 80%.. PULL THE TRIGGER NOW.

Tue, 09/01/2009 - 16:13 | 55378 RobotTrader
RobotTrader's picture

Attaboy!!!!  That's my man!!!

Tue, 09/01/2009 - 16:22 | 55395 walküre
walküre's picture

Any screen pics from the ladies on the financial channels today? Are they wearing black yet?

Tue, 09/01/2009 - 16:26 | 55402 Deficient Market
Deficient Market's picture

I second that request, would like to see Cabrera's mid-section today as an indicator of what to expect next. I know it's fighting gravity as hard as this market right now.

Tue, 09/01/2009 - 16:34 | 55416 lizzy36
lizzy36's picture

nope.

if they don't have a sense of humor than this place (and tyler's writing) ain't for them.

mind you i may not be typical as no one makes me laugh harder than the o/s work of Bess Levin.

Tue, 09/01/2009 - 16:36 | 55423 lizzy36
lizzy36's picture

she looks like a bridesmaid

Tue, 09/01/2009 - 16:43 | 55431 lizzy36
lizzy36's picture

perhaps u could explain further.....(hahaha)

Tue, 09/01/2009 - 16:58 | 55451 lizzy36
lizzy36's picture

i just think of it as a CFM expression. and boys have it as well (and it usually makes me laugh cuz it is usually a highly practiced skill set, hours spent perfecting the glance in a mirror).

blame it on sex and the city.

 

Tue, 09/01/2009 - 19:53 | 55643 They steal from...
They steal from us everyday's picture

My wife laughs her ass off at men posing in magazines.  Men look so gay when they try to pose (not anything wrong with it).

 

Women are sexy and men just look silly when they try to pose sexy.

Tue, 09/01/2009 - 18:02 | 55523 mellmeister
mellmeister's picture

Very pretty. I like the naughty expression, very boneable like the girls here in the city. Life is good! But I need to get back to work, so let me conjur an image of Dennis "I'm a hopeful fella" Kneale to lose my excitement.. .. .. .. and thank you, back to normal.

Tue, 09/01/2009 - 16:49 | 55443 Anonymous
Anonymous's picture

You're good at stocks, but I find your taste in women akin to your vodka tastes. Packaging over substance.

Just saying.

Tue, 09/01/2009 - 17:24 | 55482 Anonymous
Anonymous's picture

Then WTF are you doing recommending shitty vodka's?

by Andy Dufresne
on Tue, 09/01/2009 - 12:21
#55171

try Svedka, very nice (obviously from Sweden). Also, Finlandia

Tue, 09/01/2009 - 18:10 | 55533 Anonymous
Anonymous's picture

I'm a snob. I drink PBR Tall Boys and shots of well whiskey. Right.

But you are right about the Findlandia, it's a pretty nice vodka. But not that crap from Sweden. A Fin told me reindeer piss tastes better.

Are we finished?

Tue, 09/01/2009 - 18:55 | 55575 Anonymous
Anonymous's picture

+1

Tue, 09/01/2009 - 17:41 | 55502 Missing_Link
Missing_Link's picture

Dude.  Just look at her.  Seriously.  How can you criticize a woman like that.  FOR SHAME!  She is perfect and if I ever meet you in real life I will kick your ass.  Just you wait, Mr. Anonymous.  Just you wait.

Tue, 09/01/2009 - 17:55 | 55517 Anonymous
Anonymous's picture

Well, she may be perfect on the outside, but to my eye, she's just another Nordic princess with nothing on the inside. Now Robo's girl, she's got salsa in her eyes.

Of course, it's just my opinion and if you want to 'kick my ass' for that opinion, well, I supposed you're entitled to your opinion.

-Mr. Anonymous

Tue, 09/01/2009 - 19:35 | 55622 Audicar (not verified)
Audicar's picture

I had a feeling that the guy was not happy. And if things gets more ugly inside,he might blow a wistle,did anybody else hear that interview and had the same feeling?

Tue, 09/01/2009 - 21:55 | 55734 Anonymous
Anonymous's picture

I think he believed Beiderman more than what he was selling. I was waiting for him to say, " You're absolutely right, Charles. I don,t really believe this bulldung,I just say what they pay me for."

Tue, 09/01/2009 - 16:34 | 55419 LoneStarHog
LoneStarHog's picture

Read? You mean like words?  I thought they came for the pretty pictures.

Tue, 09/01/2009 - 23:50 | 55834 Anonymous
Anonymous's picture

Is that a puck in your pants?

Tue, 09/01/2009 - 16:15 | 55381 Jeanbon
Jeanbon's picture

If we look at WFC's books, it does not matter

wether the bank blows up tomorrow or next

year. Sooner or later Warren B. has to buy 

more of those stocks.

Tue, 09/01/2009 - 16:17 | 55386 phaesed
phaesed's picture

Ummmm..... weren't they issuing new equity this entire time?

Tue, 09/01/2009 - 16:20 | 55392 Anonymous
Anonymous's picture

you're too good. The Bernanke comparison to Biddle is probably right too. I was listening to some old Murray Rothbard tapes a while ago and everything he says is even more meaningful today. The only people that sound like Rothbard these days are a few money mangers. All the economists seem to not have a clue.

Tue, 09/01/2009 - 16:22 | 55394 D.O.D.
D.O.D.'s picture

And they only realized they were able to do it today at 3:55, wow good news does travel fast.

Tue, 09/01/2009 - 16:22 | 55397 Anonymous
Anonymous's picture

http://tinyurl.com/5ccf3h

Alan Schwartz from Bears Stearn also said something like 'everything is A-OK' two days before implosion.

watch the actual footage.

Tue, 09/01/2009 - 16:22 | 55398 Anonymous
Anonymous's picture

A hopelessly insolvent bank promises to produce a massive quantity of cash, without raising capital.

It's magic!

Tue, 09/01/2009 - 16:26 | 55401 walküre
walküre's picture
"Server Error

The server encountered a temporary error and could not complete your request.

Please try again in 30 seconds."

Has been a long 30 seconds.

Tue, 09/01/2009 - 16:29 | 55409 lizzy36
lizzy36's picture

yep same.

 

Tue, 09/01/2009 - 16:31 | 55413 walküre
walküre's picture

Where's the server located.. in the valley?

Cyber attack? TEOTWAWKI?

 

Tue, 09/01/2009 - 21:45 | 55631 Audicar (not verified)
Tue, 09/01/2009 - 16:26 | 55407 TumblingDice
TumblingDice's picture

Yes actually. The gubbermint is trying a ddos on gmail to see if they can pull it off.

Tue, 09/01/2009 - 16:35 | 55422 walküre
walküre's picture

GOOG should take a beating tomorrow.

It's been going on for 12 hours.

http://www.washingtonpost.com/wp-dyn/content/article/2009/09/01/AR200909...

Tue, 09/01/2009 - 21:44 | 55721 Chumly
Chumly's picture

I did it....it was all my fault...I opened the link sent to my gmail by the pretty girl site run by the Russian Mob over in Israel...

It's all my fault...I did it....why oh why does it always happen to me??

Tue, 09/01/2009 - 16:30 | 55411 Rex Havoc
Rex Havoc's picture

Has anyone heard Pisani's explanation for today, because he NEVER mentioned the low vol days when the mkt went up like helium. Just now watching Lebow go on a what a success "taxpayer funny money for clunkers" is. These guys should get an academy award for this.

Tue, 09/01/2009 - 16:33 | 55417 walküre
walküre's picture

I'd actually watch the Oscars again if they included this category.

Best performing Liar measured in billions of investment sucker's dollars.

Tue, 09/01/2009 - 16:33 | 55418 James Beeland R...
James Beeland Rogers Jr.'s picture

I beleive Stumpf means they won't be bringing a shelf offering...

 

Shares are still hitting hit the market from stress test secondaries.

Tue, 09/01/2009 - 16:37 | 55425 Anonymous
Anonymous's picture

There are also rumours that Cerberus is in trouble and MS.

Tue, 09/01/2009 - 16:39 | 55427 Hondo
Hondo's picture

Totally worthless.  Did Mr. Stumpf tell us when his next bowl movement is going to occur also?

Tue, 09/01/2009 - 16:43 | 55432 Neo of Zion
Neo of Zion's picture

Adding WFC to the "short to zero" list in 3, 2,...

Tue, 09/01/2009 - 16:46 | 55435 Gilgamesh
Gilgamesh's picture

Going to need a new over/under poll here, but this one could be daily.  How many Loan Modifications by JPM will be announced after the bell?

 

Glimcher Realty Trust, so far (malls):

http://biz.yahoo.com/e/090901/grt8-k.html

Tue, 09/01/2009 - 16:49 | 55441 William Wallace
William Wallace's picture

SPY never went below 100 today.  They held the line.  SPX closed below 1000, but SPY never got below 100.

Tue, 09/01/2009 - 17:00 | 55452 Gilgamesh
Gilgamesh's picture

I show a 99.99 print!

Tue, 09/01/2009 - 17:20 | 55476 Anonymous
Anonymous's picture

What the hell is this bullshit?

http://stocks.investopedia.com/stock-analysis/2009/Four-ETFs-On-Fire-Rig...

Seems to be the latest length of rope handed to the starbucks day traders.

Here's what they have to say about VNQ:

"There is still some weakness in the commercial real estate market, and many companies in this space will soon be facing debt payments resetting at higher rates, but it appears that most of the damage has already been taken into account by the market."

Riiiight...

Tue, 09/01/2009 - 18:27 | 55553 Project Mayhem
Project Mayhem's picture

Lies.

Tue, 09/01/2009 - 21:23 | 55702 Miles Kendig
Miles Kendig's picture

One more tired play on the old standby; "Don't believe what you see, believe what they tell  you".

Dumb lies come from someone who has nothing else to say.  Stupid dumb lies come from someone whose career depends on a confidence game.

Tue, 09/01/2009 - 18:12 | 55536 Anonymous
Anonymous's picture

Soon to become a common enough story--smaller regional banks are gulping for air.
http://www.sectorspdr.com/news/?do=newsStory&stype=db&newsID=6690846

Tue, 09/01/2009 - 18:36 | 55560 Anonymous
Anonymous's picture

thank you for covering this! i see the same games and I think manipulation

so evident, so obvious. so ridiculous!

not this or bac's mention last nite of same tarp bs will stop a correction. why do they bother??????

Tue, 09/01/2009 - 19:02 | 55586 Anonymous
Tue, 09/01/2009 - 21:44 | 55616 Audicar (not verified)
Tue, 09/01/2009 - 19:38 | 55629 What_Me_Worry
What_Me_Worry's picture

So TALF money can be used to repay TARP now?

What's next, the government lending money to itself?  Oh, right...

Tue, 09/01/2009 - 21:03 | 55688 nazir2000
nazir2000's picture

this is probably the OTC deritaives winning money used to payback tarp

 

 

 

Tue, 09/01/2009 - 21:07 | 55691 Anonymous
Anonymous's picture

from the bloomberg article re: Wells

"Assets no longer collecting interest in the quarter climbed 45 percent to $18.3 billion from the first quarter, the bank said July 22."

Exactly what is an asset that is no longer collecting interest?

Tue, 09/01/2009 - 21:30 | 55704 Miles Kendig
Miles Kendig's picture

The natural extension of an asset that is so encumbered it cannot be monetized with debt.

Tue, 09/01/2009 - 23:07 | 55797 Assetman
Assetman's picture

non-accruals.

and you usually need to reserve for those.

unless you're wells fargo.

Wed, 09/02/2009 - 07:51 | 55942 reading
reading's picture

Thanks, I forgot (momentarily) that nothing applies to Wells...I hope I live long enough to personally watch their implosion. 

Tue, 09/01/2009 - 21:29 | 55709 Miles Kendig
Miles Kendig's picture

All of this over the repayment of a little allowance money.  The real question is when will WFC and the others clear all of their backstops that total far in excess of whatever they got under TARP.

Tue, 09/01/2009 - 21:30 | 55711 Anonymous
Anonymous's picture

The 1-2 punch from BAC and WFC shows that the market is rigged - the powers that be obviously saw the sell-off coming this week, hence the coordinated TARP repayment announcements. I don't think its a coincincidence that WFC is leading us off this time, because it orked so well the last. But fool me once shame on you, fool me twice....

In fact I won't be surprised the vampire squids know this time it won't work, and the charts are showing - each time they ramp it up buying $1, they are probably selling $3, the violence of the downward move is too obvious for market participants not to see.

Tue, 09/01/2009 - 21:45 | 55725 Anonymous
Anonymous's picture

Fargo was a great movie. "All this for a little bit of money"

Tue, 09/01/2009 - 22:17 | 55756 phaesed
phaesed's picture

Hey..... Didn't Dick Bove even say sell the financials??? He was the perennial bull too.

Tue, 09/01/2009 - 22:31 | 55768 Anonymous
Anonymous's picture

Hey Buffett just worked a GS preferred/option deal with WFC
How else could they pull this off?

Tue, 09/01/2009 - 22:38 | 55775 nopat
nopat's picture

What's the chatter on Suntrust like?  Things seem to be too quiet for them considering just about every bank around them has shit the bed.

Wed, 09/02/2009 - 09:07 | 55967 marketforce
marketforce's picture

using any kind of means - whether otc, listed debt or otherwise would be better than paying tarp dividends...

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