Announcement

Collapse

Survival Warehouse

Please check out our Sponsor Survival Warehouse!

They are dedicated and devoted to providing the best Survival & Preparedness Gear available. They have been around for decades and really excel in the Long Term Food Storage Category.

Survival Warehouse - Offering the best deals and hard to find Survival Kits, Survival Gear, MRES, MRE Meals, Freeze Dried Camping Food, Bug out bags, Survival Gear, Gas masks and more. Be Prepared and ready for any emergency or disaster
See more
See less

Wells Fargo

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

  • Wells Fargo

    This is unbelievable..no wait, it makes PERFECT sense in today's world of illusions.

    I am posting two separate items of interest regarding the Wells Fargo "profit."



    Wells Fargo sees record first-quarter profit
    Results to exceed estimates as charge-offs, provisions below previous quarter

    NEW YORK (MarketWatch) -- Wells Fargo & Co. said Thursday that first-quarter earnings will surge to a record $3 billion, well ahead of analyst forecasts, as loan losses and provisions dropped from the previous difficult quarter and its mortgage business thrived.

    Wells Fargo projects record $3 billion 1Q profit - or have investors forgotten about the $25 billion bailout the bank received? Not that it mattered; markets have taken this as a positive...


    Wells Fargo 'Profit' - People Have Short Memories

    "Wells Fargo projects record $3 billion 1Q profit" - or have investors forgotten about the $25 billion bailout the bank received? Not that it mattered; markets have taken this as a positive and pushed an early 3% gain. WFC gapped well over resistance and although down from its open is nicely positioned to challenge $21.45 resistance.
    ************

    :rolleyes:

  • #2
    Makes you wonder if the bailout money is included in those figures. :confused:

    Comment


    • #3
      Originally posted by herbalpagan View Post
      Makes you wonder if the bailout money is included in those figures. :confused:
      I don't see how it couldn't be. There is NO logical way they could have a $3B profit without it. I hope Conner checks in here and states his opinion on the matter as well, seeing as to how he is in economics, I would love to hear his perspective on this.

      Comment


      • #4
        Wells Fargo May Need 50$ Billion In Capital

        Wait, I thought they were so very eager to boast a $3 billion first-quarter profit???? I am SO confused! ;)



        Wells Fargo May Need $50 Billion in Capital, KBW Says (Update1)

        By Ari Levy

        April 13 (Bloomberg) -- Wells Fargo & Co., the second- biggest U.S. home lender, may need $50 billion to pay back the federal government and cover loan losses as the economic slump deepens, according to KBW Inc.’s Frederick Cannon.

        KBW expects $120 billion of “stress” losses at Wells Fargo, assuming the recession continues through the first quarter of 2010 and unemployment reaches 12 percent, Cannon wrote today in a report. The San Francisco-based bank may need to raise $25 billion on top of the $25 billion it owes the U.S. Treasury for the industry bailout plan, he wrote.

        First-quarter net income rose 50 percent to about $3 billion, Wells Fargo said last week in announcing preliminary results that topped the most optimistic Wall Street estimates and sparked a 32 percent jump in the stock. The bank attributed the profit to a surge in mortgage originations and revenue from Wachovia Corp., acquired in December. Full results are scheduled for April 22.

        “Details were scarce and we believe that much of the positive news in the preliminary results had to do with merger accounting, revised accounting standards and mortgage default moratoriums, rather than underlying trends,” wrote Cannon, who downgraded the shares to “underperform” from “market perform.” “We expect earnings and capital to be under pressure due to continued economic weakness.”

        Wells Fargo raised its provision for loan losses by $4.6 billion in the quarter, below Cannon’s estimate of $5.4 billion. FBR Capital Markets analyst Paul Miller wrote after the announcement last week that he expected a $6.25 billion increase.

        Charge-offs

        Net charge-offs were $3.3 billion in the quarter, compared with $2.8 billion in the previous period at Wells Fargo and $3.3 billion at Wachovia. The current numbers are artificially low because consumers received tax refunds and a there was a moratorium on some mortgage defaults, wrote Cannon, who predicts a “re-acceleration” of charge-offs in the second quarter.

        The ability of Wells Fargo and 18 other U.S. banks to withstand further economic deterioration is being determined by the government’s stress tests, which will be completed by the end of April. Treasury Secretary Timothy Geithner expects that some lenders will require “large” amounts of capital.

        While Wells Fargo is likely to pass the test, regulators may “push for higher capital levels,” wrote Credit Suisse analyst Moshe Orenbuch in New York, who initiated the shares with a “neutral” rating today.

        “Given rising unemployment, continued home price declines and general macroeconomic headwinds, WFC’s consumer and commercial portfolios remain at risk for meaningfully higher credit losses over 2009 and 2010,” Orenbuch wrote.

        Wells Fargo rose 6 cents to $19.67 at 4:11 p.m. on the New York Stock Exchange. It has dropped 33 percent this year. Wells Fargo trails only Bank of America Corp. in U.S. home lending.

        To contact the reporter on this story: Ari Levy in San Francisco at [email protected].

        Last Updated: April 13, 2009 16:12 EDT

        Comment

        Working...
        X
        😀
        🥰
        🤢
        😎
        😡
        👍
        👎