In Tier 3 assets. 14.5% They excel beyond all. These assets are unsellable and will net pennies on the dollar. and 14.5% is from this wizard of oz show. its probably worse. but buy buy buy. its going to the moon!
your knowledge of level three assets is lacking the full truth. Everything stooge4 posted is factual, however if you were to understand these next two facts they would relieve you of most of your fear:
1) the mbs that WFC has under L3 actually would sell for more than they show them as;
2) the derivatives under L3 all have underlying assets, in other words they are all (true) hedges;
and since #2 has been touted by other banks that went under I will throw in fact # 3) derivatives are time based and eventually must mature, WFC has been immense experience over the past decades of hedging and its success of smoothing out its earnings has proven successful. These derivatives are not considered long nor short positions, but rather hedges that stop it from earning maximum income, but also reduce their risk of losing alot of income.
Its ability to smoothe out their earnings is time tested over decades, they couldnt possibly keep such a charade going without being found out (imo) in a couple of years.
Those level 3 assets would sell for pennies on the dollar. your #1 above is not true. bottom line is this company lied about the departure of their CFO, yet you trust that their hard to value assets are worth more than they say. that makes no sense to me.
You really don't know "sheet" about banking, finance or accounitng do you? Despite your claims to have been a real hot rock. For one thing, "Tier 3" is normally used to refer to capital levels. What you are talking about is Level 3 Assets, and that destinction is used only to designate the methodology used to compute fair value for accounting purposes (FASB 157). Level 1 assets can be priced using easily observable market prices. Level 2 can be priced using proxies and observable benchmarks. Level 3 by virtue of their unique individual nature (such as a one-off swap contract), must have their "fair value" determined by internal assumptions and in-house modeling. The designation of Tier 3 asset has no implicit or explicit correlation to credit worthiness or true value. By nature, these are relatively illiquid, but the counterparties know that going in, and the intention is to keep them on a balance sheet till maturity. Your statementy that these "will net pennies on the dollar" shows nothing more than total ignorance. You are a fool, a buffoon and a troll.