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Wells Fargo: Loan Repurchase Reserve Liability Of $1.3 Billion On $144 Billion In Loan Originations
The only pages in Wells Fargo's typically labyrinthine earnings release were 26 through 30, in which Warren Buffett's bank, which continues to be in denial over Fraudclosure and still refuses to admit it also was a RoboSigner, discloses its putback/repurchase liability. The total disclosed repurchase reserve liability as of September 30 was $1.3 billion. This compares to Bank of America's total Rep and Warranty liability of $4.4 billion, which as we disclosed yesterday took a tiny provision of $872 million in Q3. This means that when, not if, Wells is also subject to a comparable action by litigants such as the one from yesterday which included Gross, Fink and Dudley on the offensive, the hit to the bank will be that much more dire. And since Wells management now has zero credibility, and negative fiduciary duty to its shareholders, we are currently combing through the MaidenLane portfolio to determine which New York Fed securitizations include loans originated by Wells Fargo. We are confident quite a few will make the cut. After all, as the bank itself notes, of its $1.8 Trillion Resi Mortgage Servicing Portfolio, "8% [or $144 Billion] are private securitizations where Wells Fargo originated the loan and therefore has some repurchase risk."
Drilling further down into this $144 number:
- 55% are from vintages 2005 and prior
- 83% are prime
- Only $69 million of repurchases in 3Q10
Additionally, another $144 billion of the portfolio is non-current. Shortly we hope to have enough data to cojoin these two Venn circles and determine how much of the non-current loans were Wells originated. The 30,000 foot answer: a lot.
Below is a summary of the company's servicing portfolio:
And here is just how unprepared the bank is to an action comparable to that taken against BofA yesterday:
And...
In other words, how many lambs does one slaughter to thank the gods for not being John Stumpf right about now?
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Wednesday is meatloaf with cherry sauce and french fries day in the Wells cantina!
Ummm...not sure I agree. More importantly, the guys selling banks straight out of the chute probably would not agree either.
Basic undertanding of this systemic fraud has reached main sreet. Pretty hard to put it back under wraps.
I agree. It won't be put under wraps. There will be a "political" fix enacted to "save" our precious banks. Remember your programming. We can't live without the big banks.
And please don't tell me the people will revolt because they won't. There is not enough pain "yet" to shake people out of their trance. Will they be angry, upset, spitting mad? Sure they will be. But will the people "do" anything about the upcoming "political" solution?
Nope, they won't because it will occur after the elections. People have been well trained to "do" something at elections. Meaning they change factions (D or R) within the same fascist political party. There just isn't enough pain being felt by the American population at this point to even march in the streets let alone push back against their abusers.
Stockholm Syndrome and abusive spouse (authority) syndrome writ large.
Max Keiser calls Americans "pussies", says the French "cut people's heads off" when they don't agree with what's going on. French are willing to fight for their freedom, American's sit on the asses and do nothing. This is part two of the interview with Alex Jones yesterday:
http://www.youtube.com/watch?v=Epq7d5foezs
I love Max Keiser
I'm for the beheadings. Quick & clean. Corpses are incorporated into pet and livestock foods, heads pulverized into dust and mixed with cement that goes into repairing our aging infrastucture.
"Clearly Wells Fargo knows the fix is in and they will never ever be made to eat their own cooking."
CD, do you really believe that? If so, game over. I prefer to believe that it is game on. The banks are now being squeezed on both sides and are in a most precarious position. On one side are the home owners pushing back against fraudulent foreclosures. On the other side are the MBS holders pushing back against fraudulant securitization. On the menu: Revenge.
La vengeance se mange très-bien froide.
Who has the power in America? The Federal Reserve (and its member banks) and the corporations.
So do you believe the Federal Reserve and the corporations will allow the banks to be taken down? No.
Were the banks allowed to be taken down in 2008? No.
Which private for profit bank has more "legal" power now than in 2008? The Fed.
Do you think that if the banks begin to fall apart that the Fed will stand aside and allow this to happen? No.
Do you think the Fed will force Congress to enact a "political" fix if they balk? Yes, by creating a massive financial crisis, just like they did in 2008.
Congress, and the President for that matter, are paper tigers for domestic show in order to convince good people such as yourself that there is "hope".
Watch for an upcoming article from me about "The Bloodless Coup".
Such pessimism! ;-)
Not at all. I'm realistic in my assessment of how the game works. Would I be pessimistic if I said that if I cornered a bear, I would be mauled and possibly killed? I suspect not.
I'm extremely optimistic that eventually people will become so beaten down that they will revolt. But to enable people to carry false hope just so they can trudge off to their hamster wheel with a smile on their face is not in their best interest.
Folks, we complain all the time about a population that is sleepwalking. And yet we remain asleep ourselves. We can do the hard work now or later. But it will need to be done.
I happen to share your outlook. Whenever folks call me a doom and gloomer, I correct them with the label optimistic pessimist, noting that I'm quite sure that we're going to "hell in a hand-basket" but that the only way out of any disaster is never back, but through.
They may not like my form of tough love, but I'm not going to play along with their hopium apathy. Especially when the conversation goes into the ultimate area of irresponsibility, the world of political "solutions."
It's as simple as replacing the word "government" with "mafia." Reductio ad abursdum, FTW!
Don't give the government more respect than they deserve. The "mafia" has power. We live under "BANKSTER RULE" now, and government can do NOTHING to stop it. The coup has taken place. There is no need for government bailouts, the FED has figured out how to take care of it's member banks (particularly the top 6 "families").
"When a government is dependent upon bankers for money, they and not the leaders of the government control the situation, since the hand that gives is above the hand that takes... Money has no motherland; financiers are without patriotism and without decency; their sole object is gain."
- Napoleon Bonaparte, 1815
CD looking forward to your "The Bloodless Coup". I think it has already taken place, but very few people see it.
And it happened well before 2008. Consolidation was the 2008 event.
But Miss E, if you take a point of view just one level higher, there is no other entity that is more "in" than the banks and bankers. Revenge?
That will be ketchup-blood stage-management.
Of course all the worker bees in the bank will hurt with lay-offs etc., but for the top of the heap, it is unfolding Exactly as per plan.
ORI
http://aadivaahan.wordpress.com
"Never, ever" is a whole lot of cynical confidence. Some of the smartest people fall victim to it. Actually, I would argue that since they are so good at thinking and life is so much better for them in that world, they are spectacularly prone to it.
I think you're correct, however, in the apparent understanding you express in "I prefer to believe that it is game on," Miss Expectations.
Cynical paralysis is not as sexy as so many seem to think. Nor does it support any hope for a better future.
Bob,
What is the difference between cynical and realistic or clear eyed? Because if you have read my articles over the past year you will find someone who is extremely hopeful that humanity will find the courage to push through our internal and external problems.
However, the powers that be work from an extremely old and predictable playbook. So while the actual application of each play may have hundreds of permutations, the basic play is the same each time. Protect themselves, exercise their power and back up all bluffs, show no mercy, manipulate public sentiment and beliefs and live to fight another day.
Sorry, CD. But what I see is some possibility of a gathering Perfect Storm that requires people to think in terms of action, rather than longterm evolution, for impact.
In spite of our shared values and visions, we have a fundamental difference of opinion about what is possible short-term.
Thus a market in ideas is formed.
What's your ask on "hope". I'll take all you have, but please leave the "false hope" at the door. :>)
I believe anything can happen at any time. I just worry about who's behind it. Maybe we'll have a CIA/NSA/MIA inspired "color" revolution like so many former "iron curtain" countries have experienced to change the laundry. I vote for chartreuse.
And we can also second guess ourselves into oblivion.
I think we both understand each other. I respect your arguments. Hell, much of what you say I hold as argument for action now--because with further technological advancements and consolidation of power, later will likely be too late.
Now if I said that I would be accused of being cynical or pessimistic. I outline very clearly in severals sections of my "Welcome to the Insane Asylum" series why psychologically the longer we accept the abuse, the more difficult it is to break from the abuse. Add in the obvious escalation of the physical aspects of state "control" and surveillance and we are rapidly running out of time.
9/11 was the tipping point, the "all in" moment for the powers that be. We have crossed into the twilight zone and the exit light is becoming very difficult to see. So what am I going to do about it? What are you going to do about it. What are we going to do about it?
You're an exceptionally persuasive man, CD. Think about using that to mobilize people.
You ever get the feeling that people are just a little too quiet? Something that's hard to put your finger on, but it's . . . different. Something's out there.
it was right in everyone's face. tyler and i just made it visible. it was on the tip of everyone's tongue. tyler and i just gave it a name...
"Repurchase exposure is manageable"... yeah for sure!
YOU CAN TAKE THAT TO THE BANK!
The blood bank: http://www.youtube.com/watch?v=3Jji78uEW14
One of the corniest movie scenes EVER.
I spoke with a Wells corporate officer some time ago who said the company sold the sub-prime and lower quality stuff and kept only the cream of the crop, so none of this is surprising.
(Since this time he has developed alsheimers - for real.) If they deceived the buyers and rating agencies, then this seems like it could be a major problem that could bite them in the ass.
(Since this time he has developed alsheimers - for real.)
My mother was a loan officer for years at one of these TBTF banks, she also developed alzheimer's not long after retirement and It dosent run in our family. Wierd stuff.
Quality is one thing, producing a note is another.
maiden lane is a drop in the bucket and the fbi is a joke. hey fbi, i saw someone tear the tag off a new mattress yesterday, better get on it.
Didn't Sandra Bullock work at the FBI?
I watched that real life documentary where they went undercover in the Miss United States beauty pageant to prevent a group from bombing the event.
Good stuff...
As usual, gold is the first asset dumped overboard whenever there is a convulsion, crisis, or conflagration in the credit markets.....
Can't fight the Algo/Igor/Robo programs, who can push these markets around at will.
Yea Robo youre right about that, I was never all giddy over gold. In fact I said those who hold tons of it will be happy to plunge it to shake out the peasantry with their small sacks of a few coins.
Got to agree with Robo on this one. I was a AuBug till two days ago.
But all of a sudden, Gold seems to have it's head in the guillotine. In fact, a scenario I can envision is that to pass some short-term, crowd placating, 2000 page Mortgage fixing bill on November 3rd, or in response to some other Hagelian D inspired False flag, on some obscure page, hidden 6 deep, will be a gold market altering something.
Such is how this system works. They've even got the sticks and stones scenario planned, believe me.
ORI
http://aadivaahan.wordpress.com
Robo and others, you are idiots. The banksters and investment firms need dollars FAST to cover their assets... and easiest way to get that while locking in profits is gold. Darn you follarbugs, not too bright when you look at the dollar's constant decline over the decades while gold climbs during the same period. The good news is that weak hands like yours sells gold to strong hands.
Gold always looks toppy to those who don't understand its true value.
My opinion? Not one single fundamental driving gold higher over the last 9 years has corrected. Everything has gotten steadily worse, as predicted by many who have made the case for PMs during this time.
No matter what happens to global financial systems in this debt saturated environment, real assets will provide superior storage of value in comparison, as either the system will crash, or be reinflated into an even bigger future debt bomb.
The opportunity costs of PMs are completely gone now, while the opportunity costs of holding paperized promises approaches infinity.
While it's silly to assume that gold always goes up relative to the dollar, I will request that you look at the charts the last time the stock markets crashed and tell me the percentage loss by GLD relative to that crash. Even with GLD levered/manipulated as it is, it fell by less than half (from a percentage standpoint) compared to SPX. So even within chart world, GLD >>> SPX for downside risk.
"Repurchase exposure is manageable"
I guess it is when you have the Federal government & the Federal Reserve helping you.
If memory serves me correctly, Wachovia was one of the main shops that was originating so called "liar loans". I think a 1% reserve against put-backs might be just a little light...
Wells Fargo through my workings with them as a bank president and from personal experience as to a personal situation I can state unequivocally that their leadership is negligent and lies and should be subject to criminal prosecution and I am taking my case to the proper authorities and news organizations in Arizona. I have a very good source in the local news media who wants to do a big story on this foreclosure fraud and I have already done one story and Wells will be highlighted in my next story. You see after 35 years in this industry I want justice against the big earners on top who have misled and robbed the American people for years and I will get it.
@ Banker Bob
Thank You.
Good luck getting through the MSM blockade and spin control.
It has lasted decades (centuries) precisely because (on the big destabilizing things) we have an extremely compliant "free" press. Sure they'll expose the state senator tapping feet in the bathroom stall. And they'll talk about those poor unfortunates being thrown out of their jobs/homes/whatever.
But to expose the fraud that feeds them and those that control them? Not likely. Oh sure, something will be plastered all over the place to create the illusion that the MSM is "on the job protecting America". But most Americans have not come to grips with the fact that the MSM is an integral part of the Ponzi.
When they are in control of the news .... They are not in control of the mortgage train its off the tracks pimco/blackrock/met going after BoA, if I would have told you this 2 weeks ago you would have told me I was nutz ...
There will be a political solution implemented after the elections. This "solution" will negate most of the legal issues other than some "I'm sorry" money spread around to kill the pain for a while. Take a look at how massive frauds that seriously hurt the "public" over the past 400 years were handled.
There is always a political solution. Always.
CD, how about just saying "thank you" to Bob for his effort and leave it at that.
Thank you Banker Bob.
;-)
Here is how we respond to banksters "Thank you sir, may I have another?":
http://www.youtube.com/watch?v=qdFLPn30dvQ
Banker Bob, please post the TV station, so I can see the results of your work.
If consensus reality wants hope, consensus reality will get hope.
Unfortunately the sociopaths feed off hope for breakfast. We don't need to turn into them in order to resist. In fact, just the opposite. But we must be able to recognize them through our own denial and bargaining.
Here is how we respond to bankers - http://www.youtube.com/watch?v=G54lfxiid_w
Takin' It To The Streets, bitches.
Edit: Michael Mcdonald wouldn't be leading the charge - unless he wants to.
Where is ANY kind of response to the banksters actions? Maybe a couple of people have torn or burned down their homes rather than lose them to foreclosure. Other than that I have seen nothing. No protests, no riots, nothing.... The "Tea Party" marches are peaceful events protesting the worthless whore politicians, and quite frankly they have done nothing to stop the rape and pilage of the banksters. Hats off to the French and Greeks whom are willing to actually "take it to the streets".
BoA may not make it till next thursday ... The cop's in crook county just stopped evicting over forclosures. Via' the web this story is moving fast.
What happens if another large bank gets served a 50 billion dollar burger from a state/union in the next 2 days the people will go ape shit when they find out pensions/future destroyed by mortgage fraud.....pushback city the guys on a state level have no ties with TBTF, .....the melt up is not going to wait for elections.
Personally I hope you're correct. I really would like to see this entire mess come apart.
My only question is this. How many other times over the past year and a half here on Zero Hedge have people been pointing to this or that breaking point as "the one" that will push it all over the cliff?
I have stopped being surprised by the degree to which the supposedly dead still live.
My only question is this. How many other times over the past year and a half here on Zero Hedge have people been pointing to this or that breaking point as "the one" that will push it all over the cliff?
You have no doubt studied history. There are many examples. Patience and an incessant pounding away are two examples - tiring as it may be.
I'm not saying it won't be effective. We must all pound away.
The problem comes from people placing so much hope into "this time it will be different". Then it isn't and emotionally people become burned out. I have no problem with "hope". We must all have hope or we won't get out of bed in the morning.
It's the false hope that I have a problem with because it leads to massive emotional and psychological casualties. And it opens us up to manipulation a la "Hope and Change" Obama as just one example.
In the meantime, WFC posts a 19% increase in profits, stock up over 5% on today's good news!! And the beat goes on.....
Banker Bob, Please exercise extreme caution near the hot tub.
My first post is to support Banker Bob.
I am a professional soldier, not an economist. I am getting angry about this rampant fraud that has become a sham of what the United States was supposed to be standing for.
Some people have witnessed others die for their integrity, for the morals and ethics and values of a Nation that seems to have lost it's way.
The fury seems to be building among those who know with what ease others have accepted their freedoms in America, and their willingness to piss it all away for another round of Dancing with the Stars.
Payment in blood has already been rendered by this generation. Payback if this is handled incorrectly by TPTB could be coming.
I am hopeful for the best possible, peaceful outcome. But my hope for a reasonable outcome is dwindling.
The MSM gatekeepers are powerful. If done thru local affiliate, please do us a favor and insure it gets posted to U-Tube. Thanks
I was posting the other day about just how bad WFC is and no one was doing the research. Now it's getting out there. These guys are a ticking time bomb.
Aaaaaaannndddddd...the stock is up. You can fool some of the people all of the time...
And the bomb squad from the FED, Treasury and FDIC are working hard to defuse it. Guess what, they will defuse it.
They don't need Congress or the President's approval (TARPs) anymore to save the banksters, they OWN the government. If WFC needs $200 billion to buyback crappy MBS, they will get it no questions asked. They will dump the shitty MBSs into the Federal Reserve cesspool (a filthy, disgusting, or morally corrupt place). Dollar be damned, this is BANKSTER RULES now!
1. With any luck this massive mortgage putback will be the final straw for the big banks and a 90's-esque Resolution Trust Co. will be created to put them down and sort through the wreckage - something that should have been done in the first place (circa 2008).
2. I continue to think that any kind of resulting, free-house windfall bonanza to defaulting borrowers will be a social disaster.
2a. Any mortgage title/note who's legit ownership can not be determined should default to the government agency/trust in charge of unwinding this ongoing, zombie, mortgage securitization horror show (see 1).
And in one fell swoop the Government suddenly owns more homes than any other person/entity in the country. Brilliant, maybe that's been the plan all along. Nationalize home ownership.
One more step after that my friend. Who do you think the Government will sell all those homes to..........at fire sale prices of course.
Right... I wouldn't assume the Government would hold on to them. Pennies on the dollar back to whichever banks it's decided are allowed to survive.
http://www.thetruthaboutmortgage.com/large-inventories-of-foreclosed-hom...
Just the beginning.
Implicit in my 'Resolution Trust' scenario is that those homes would be foreclosed on and sold (absent any workout) in a timely manner to reduce the ultimate (and already existing) taxpayer liability. The government didn't just permanently nationalize all those failed S&Ls in the early 90's and I believe the RTC ultimately turned a small profit.
There aren't any fantastic options here and yes, I am generally loathe to hand this administration more control/ownership of anything but the best system to deal with this kind of thing is one that works within existing legal structures, prescedants and systems of accountability. After all, you can't really game or hope to effectively manage official fraud and arbitrary authority.
We may be too far gone already but I'm trying to be constructive here.
what comes after denial on the "emotional curve"?
"what comes after denial on the emotional curve"
Addiction and self destruction.
show of hands ... who here believes that the many CBUs [corruption-based-units] in the executive and legislative and judicial branches are not painfully aware of this? they have to have been sweating this development for some time and the ministry of truth certainly has a plan prepared to put truthiness to the lie offered by the secretary of housing and urban development this morning:
"we're not seeing underlying structural issues with mortgages."
there you have the administration's stand on this issue and, like the previous occupant of the white house, they won't let any undesirable facts get in the way of their mantra.
"we're not seeing underlying structural issues with mortgages."
Yea, right,
They had their heads you know where until the Fannie and Freddie shit hit the fan too. "Like wow, we're did all those billions go?"
The "CBUs" as you call them are either in-on-the-deal or dumb-a's that have ACORNs for brains quivering in their idiocy over the critical issues of the day such as "don't ask, don't tell" etc.
So what is "the event" - to you, that is, that'll make this ponzi pop? For me, I'm going with the first 10 or 30 that doesn't go according to plan - thats my keystone.
MBS Origination:
Wells+Wachovia;
BAC+Countrywide; and
JPM+BSC+WaMu.
= TARP 2,3 and 4.
Problem solved. Carry on.
TARP.....er....sorry.....TRAP 2, 3 and 4 sprung. Now, do I chew my leg off or lay here and die from exposure?
Use one of those traps on that bear you cornered this morning! Let the bear chew off your leg that is caught in the other trap.
Try SPF 50. You can spot test it on your dismembered leg to make sure there are no discolorations or stains.
When the sandwich guy pulls up to your parking lot, order some noodles while you watch the Terminator movie marathon.
Wells has the most fictitious financials of all of them. So it follows that they are the biggest liars as well.
And yet shares in WF are being pumped through the roof in an attempt to produce positive price action in the entire fraud banker group.
Hard to take. I just means we are one step closer to being entirely freakin' doomed.
Warren Buffet's bank -- true, I love it
Wonder if he is still trying to give his billions away, he's such a nice guy.
Buffet was calling for USD crash in 2005 and said to invest in China, and got out of bank reinsurance, said it was a timebomb waiting to go off. Warnings noted. But why not warn us about WF and Obama?
.
Thanks for taking the time to discuss this, I feel strongly about it and love learning more on this topic.
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