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NEW YORK - Wall Street surged after Wells Fargo forecast a record $3 billion profit for the first quarter, giving investors hope for other financial company results.
The Wells Fargo news offered investors some of the best evidence to date that the credit and lending markets are improving.
Another glimmer in the darkness: Consumers continued to shop cautiously in March amid high unemployment and continued home foreclosures, but there were some signs of stabilization in retailer's sales reports on Thursday.
Well a ton of people did re-fi's with them this past quarter. Jan the rates were at all times lows and there were also great rates in March. I'm not sure how much of that is recorded in their profits but 3 billion is a huge number!
Well don't forget they took 25 billion in tarp money and have to pay it all back! I do think Wells Fargo is a solid company and will come out of this crisis.
Well don't forget they took 25 billion in tarp money and have to pay it all back! I do think Wells Fargo is a solid company and will come out of this crisis.
Not from what I've heard... from people in the industry
Wells Fargo is based in California... with probably a large portfolio of the option Arm and Alt-A Jumbo loan junk in the back burner.... hmmm good luck.
Launched Interest Only Program in 2001: Wells Fargo Home Mortgage Launches Interest-Only Feature
Quote:
For most homeowners, paying principal and interest on a mortgage is just part of the American dream. The newest product feature from Wells Fargo Home Mortgage, however, may soon change that perception. The company recently launched its Interest-Only feature, which eliminates the need for homebuyers to pay the principal portion of their mortgage for a fixed period of time, reducing their monthly payment.
When you can get money at 0% and lend it at 5% or higher...how can you not make money?
You need to look at the TARP loans terms the interest rate is 5%. Pretty good deal when the goverment borrows the money at 3%. That is just one reason so many banks want to pay the money back. In fact with teh goveranmnt changing the terms after the loans were made has had mnay thinl twice about getting in on the Toxic asets plan. I ceertainly would want anyone to be able to just at will change the terms on any loan I made especaily one of those that were forced to take the loans.But many say that we make find out which banks need the money from the stress test.But if the FDIC leak is right the so called stress test may not amount to much .
I'm not about to begin to lower my guard when it comes to banks claiming profits especially with the government promising oversight of them. Or are they? Didn't the FED or was it the Treasury refuse to disclose where that bailout money went and how it was spent? There's an awful lot of cheap and almost free money flowing around.
And they also changed the accounting rules just in time for 1Q..mark-to-market turned into mark-to-whatever-you-want plus they can remove some liabilities from their income statements.
It would be interesting to compare 4Q08 with 1Q09 and see how much changed.
So where are the results of this stress test they ran on the banks before these accounting changes ?
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