Wells Fargo

GoldCore's picture

It would likely also deal another blow to the U.S property market and the fragile U.S economy. JP Morgan, Bank of America and Wells Fargo appear to be most exposed - meaning that either taxpayers will again be asked to bail out banks or more likely the coming bail-in regime will confiscate cash from depositors. 

Frontrunning: November 26

  • M&A Mystery: Why Are Takeover Prices Plummeting? (WSJ)
  • Hedge-Fund Fight Club Traded Illegal Tips Not Punches (BBG)
  • Speed Traders Meet Nightmare on Elm Street With Nanex (BBG)
  • A new wave of U.S. mortgage trouble threatens (Reuters)
  • Penny Lane: Gitmo's other secret CIA facility (AP)
  • US hardens threat to leave Afghanistan with no troops (WSJ)
  • Russian Prison Stuns Captain of Greenpeace’s Bombed Ship (BBG)
  • ECB's Weidmann Warns Central Banks Might Be Too Dominated by Fiscal Concerns (WSJ)
  • China Air Move Splits Japan as Carriers Obey New Rules (BBG)
  • Inside the Breakup of the Pritzker Empire (WSJ)

A Bull Market In $1,000 Faucets As Home Equity Loans Soar

It’s interesting, disturbing and pathetic that this article emerged so shortly after we highlighted the fact that there is about to be a huge, and potentially disruptive reset in home equity loans over the next several years. So while we are still dealing with the ramifications of the prior housing bubble and the HELOCs associated with that debacle, we are right back at it. Extracting additional equity from another phony housing bubble to remodel homes that likely aren’t worth anywhere near what people think once private equity and money laundering oligarchs are done with their binge buying. As we have said many times before, QE makes a society lose its mind.

Frontrunning: November 25

  • Washington turns bond market upside (FT)
  • China Air-Zone Move Expands Field of Islands Spat With Japan (BBG); Japan rejects China claim on airspace over disputed islands (FT)
  • 'Great Satan' meets 'Axis of Evil' and strikes a deal (Reuters)
  • Iran Pact Faces Stiff Opposition (WSJ)
  • Allies Fear a US Pullback in Mideast (WSJ)
  • India to resume paying Iran in Euros (Economic Times)
  • At 'Business Insider,' it's time to sell (USA Today)
  • More ECB currency war jawboning: ECB’s Hansson Says Rate Cut Options Not Fully Exhausted (BBG)
  • Spy World Links Plus Obama Ties Stoke Concern About NSA Review (BBG)
  • A disunited Europe will struggle even to disintegrate (FT)

Frontrunning: November 22

  • Wonder why: JPMorgan plans to keep pay roughly flat from last year (Reuters) - maybe this: Charles Schwab Warns "We Are In A Manipulated Market"
  • Democrats overturn filibuster rule, increasing Obama’s power (FT)
  • Day JFK Died We Traded Through Tears as NYSE Shut (BBG)
  • When even dictators snub Obama - Afghanistan rejects U.S. call for quick security deal (Reuters)
  • Obama Plunges in Investor Poll as Stocks Make New Highs (BBG)
  • Iran, six powers struggle to overcome snags in nuclear talks (Reuters)
  • Derision for China’s ‘rejuvenation index’ (FT)
  • Bottom is in: Paulson Said to Inform Clients He Won’t Add More to Gold (BBG)
  • German business sentiment rebounds strongly (WSJ)
  • WTO on verge of global trade pact (FT)

Frontrunning: November 20

  • JPMorgan $13 Billion Mortgage Deal Seen as Lawsuit Shield (BBG)
  • J.P. Morgan Is Haunted by a 2006 Decision on Mortgages (WSJ)
  • World powers, Iran in new attempt to reach nuclear deal (Reuters)
  • Keystone Foes Seek to Thwart Oil Sands Exports by Rail (BBG) - mostly Warren Buffet?
  • How Would Fed Deal With Debt Ceiling Crisis? Look to Minutes for Clues  (Hilsenrath)
  • Anything to prevent the loss of prop trading: 'Volcker Rule' Faces New Hurdles (WSJ)
  • BOE Sees Case for Keeping Record-Low Rate Beyond 7% Jobless (BBG)
  • Obama Backs Piecemeal Immigration Overhaul (WSJ)
  • Abenomics Seen Cutting Japan Bad-Loan Costs to 2006 Low (BBG)

Frontrunning: November 19

  • J.P. Morgan, U.S. Reach Historic Settlement (WSJ)
  • OECD cuts global growth forecast (AP)
  • Guess the profit margin: Wal-Mart Touts $98 TV as Holiday Seen Weakest Since 2009 (BBG)
  • Republicans defy threat, block another Obama judicial pick (Reuters)
  • Fed Ponders How to Temper Tapering Without Rate Increase (BBG)
  • Wall Street uses 'merchant' workaround to cling to commodity assets (Reuters)
  • PBOC to ‘Basically’ End Normal Yuan Intervention, Zhou Says (BBG)
  • Italy’s leader warns Germany of rise of anti-European sentiment (FT)
  • Yellen Nomination for Fed Chairman to Get Vote This Week (BBG)
  • As U.S. default threatened, banks took extraordinary steps (Reuters)
  • NSA vowed repeatedly to fix its collection errors (AP)

Frontrunning: November 18

  • What can possibly go wrong: Tepco Successfully Removes First Nuclear Fuel Rods at Fukushima (BBG)
  • Japan's Banks Find It Hard to Lend Easy Money (WSJ)
  • U.S. Military Eyes Cut to Pay, Benefits (WSJ)
  • Airbus to Boeing Cash In on Desert Outpost Made Field of Dreams (BBG); Dubai Air Show: Boeing leads order books race (BBG)
  • Sony sells 1 million PlayStation 4 units in first 24 hours (Reuters)
  • Russian Tycoon Prokhorov to Buy Kerimov's Uralkali Stake (WSJ)
  • Google Opening Showrooms to Show Off Gadgets for Holidays (BBG)
  • Need. Moar. Prop. Trading: Federal Reserve considering a delay to Volcker rule (FT)
  • Raghuram Rajan plans ‘dramatic remaking’ of India’s banking system (FT)
  • SAC Capital's Steinberg faces insider trading trial (Reuters)

Guest Post: Take It To The Bank

If one was a foreigner visiting for the first time, one would think Space Available was the hot new retailer in the country. Thousands of Space Available signs dot the bleak landscape, as office buildings, strip malls, and industrial complexes wither and die. At least the Chinese "Space Available" sign manufacturers are doing well. The only buildings doing brisk business are the food banks and homeless shelters. However, reports like the recent one from SNL Financial – Branch Networks Continue to Shrink - are emblematic of the mal-investment spurred by the Federal Reserve easy money policies, zero interest rates, and QEternity... In a truly free, non-manipulated market the weak would be culled, new dynamic competitors would fill the void, and consumers would benefit. However, extending debt payment schedules of the largest zombie entities and pretending you will get paid has been the mantra of the insolvent zombie Wall Street banks since 2009.

Frontrunning: November 14

  • Yellen to defend Fed's ultra-easy monetary policy (Reuters)
  • Japan growth slows on global weakness (WSJ)
  • Eurozone third-quarter growth falters (FT)
  • Fed Debates Its Low-Rate Peg (Hilsenrath)
  • Yellen: Economy Still Needs Fed Aid (WSJ)
  • ‘Obamacare’ launch fiasco rouses sceptics (FT)
  • DoubleLine's Gundlach says U.S. equities 'only game in town' (Reuters)
  • Indian Inflation Exceeding Estimates Adds Rate-Rise Pressure (BBG)
  • HUD Said to Fail in Bid to Sell $450 Million of Mortgages (BBG)
  • Boeing machinists reject labor deal on 777X by 67 percent (Reuters)

Frontrunning: November 13

  • Desperate Philippine typhoon survivors loot, dig up water pipes (Reuters)
  • Fading Japanese market momentum frustrates investors (FT)
  • China's meager aid to the Philippines could dent its image (Reuters)
  • Headline du jour: Granted 'decisive' role, Chinese markets decide to slide (Reuters)
  • Central Banks Risk Asset Bubbles in Battle With Deflation Danger (BBG)
  • Navy Ship Plan Faces Pentagon Budget Cutters (WSJ)
  • Investors pitch to take over much of Fannie and Freddie (FT)
  • To expand Khamenei’s grip on the economy, Iran stretched its laws (Reuters)
  • Short sellers bet that gunmaker shares are no long shot (FT)
  • Deflation threat in Europe may prompt investment rethink (Reuters)

Frontrunning: November 12

  • China Pledges Greater Role for Market in Economy (WSJ), China vows 'decisive' role for markets, results by 2020 (Reuters)
  • China expected to cut growth target to 7% (FT)
  • World Trade Center Tower Debuts in Manhattan Leasing Test (BBG)
  • Job Gap Widens in Uneven Recovery (WSJ)
  • Khamenei’s conglomerate thrived as sanctions squeezed Iran (Reuters)
  • Swiss referendum on wages of high earners stirs debate (FT)
  • Obama to Nominate Massad to Head CFTC (WSJ)
  • Japan readies additional $30 billion for Fukushima clean-up (Reuters)
  • Target Fills Its Cart With Amazon Ideas (WSJ)
  • Shadow banks reap Fed rate reward (FT)

Frontrunning: November 8

  • Fed Anxiety Rises as QE Raises Risk of Loss With Political Cost (BBG)
  • Iran Nuclear Deal Expected as Early as Friday (WSJ)
  • Israel rejects mooted interim Iran nuclear deal, Kerry heads to talks (Reuters)
  • JPMorgan Banker Backed $200 Million Madoff Loan in 2008 (BBG)
  • Unleashing the food nazis - FDA Says Trans Fats Aren't Safe in Food (WSJ)
  • Draghi Aggression Shows Pledges Backed by Rate Surprise (BBG)
  • S&P Cuts France's Credit Rating by One Notch to Double-A (WSJ)
  • S&P criticises France’s high tax rates for stifling growth (FT)
  • Payroll Gains in U.S. Probably Cooled Amid Government Shutdown (BBG)

Frontrunning: November 7

  • Twitter's IPO to Make Market Debut (WSJ); Twitter Raises $1.82 Billion, Pricier Value Than Facebook (BBG)
  • Worried Senators Press Obama on Health Law (WSJ)
  • Greenspan Says Yellen Was His Guide to Economics Research at Fed (BBG)
  • European Central Bank seen holding rates despite inflation tumble (Reuters)
  • Wall St. Bonuses Over All Are Predicted to Rise 5 to 10% (NYT)
  • Cautious consumers seen curbing U.S. economic growth (Reuters)
  • China Grants U.S. Investors Indirect Access to Its Stock Markets (WSJ)
  • Higher Tax Rates Give Top U.S. Earners Year-End Headaches (BBG)
  • Iran Loses Nuclear Leverage as World Ignores Export Drop (BBG)
  • NYPD Commissioner Ray Kelly in the running for JPMorgan job (Post)