We have not seen a nationwide decline in housing like this since the Great Depression," Stumpf said at a Merrill Lynch & Co banking conference in New York.
Can't beleive he said this. Maybe he is shorting WFC. Seems to be an irresponsible statement from management.
His statements follow the WFC mantra of never giving details like other companies, could be they don't want to be caught in a lie..
Here is WFC's response to the MM issue:
"On Wednesday, some of the biggest money-fund providers took steps to reassure investors that their cash is safe.
Fidelity Investments, the Boston-based fund giant, says about 3.6% of its $336 billion in money-market assets as of Sept. 30 had SIV exposure.
"Fidelity has not seen any need to set up a credit facility to support the money-market funds," spokesman Alexi Maravel said. "We continue to be proactive in keeping the money-market funds safe and protecting the $1 net asset value, which is always the primary objective."
Wells Fargo & Co. (WFC) , with more than $100 billion in money funds, sounded a similar tone.
"The quality of securities held by Wells Fargo Advantage money-market funds has remained stable and none of the funds' portfolio managers nor Wells Fargo & Co. have been forced to take any unusual action to preserve the net asset value of the funds," spokesman John Roehm said in an email.
"Wells Fargo Funds Management has the highest conviction in the credit worthiness and relative safety of the securities in its money-market funds," he added.
San Francisco-based Wells Fargo, the fifth largest U.S. bank, so far has fared far better than virtually all of its peers.
That's because Wells Fargo sold most of the $2 trillion in home loans that it has originated since 2001 and invested relatively little money in the mortgage-backed securities that have been saddling other big banks with huge losses. In contrast, Wells Fargo ended September with $581 million in unrealized investment gains on its books.
Stumpf said he didn't even know about some of the exotic mortgage investments that enticed other banks until he read about them in the newspaper.
"It's interesting that the industry has invented new ways to lose money when the old ways seemed to work just fine," Stumpf said.
The organization certainly isn't acting like there's any distress in the market. Lots of empty and expensive suits shuffling around the mortgage biz, plenty of paper pushing staffers with big travel budgets flying around. Plenty of room to squeeze expenses.
Not a nuanced comment certainly, but he told the truth. And I hope all who heard it take heed and participate in cleaning up the financial mess created by greed and exacerbated by stupidity. We are our own worst enemy.
It is not irresponsible to be honest. The mortgage biz sucks right now. I know I am in it. WFC is the second largest mortgage player in the US, they may have less bad paper than others, but my guess is they have more than the approx 500m they have stated. All other players a stating multi billion dollar write-downs, and increasing loan loss reserves. IMO this statement is a not so subtle warning, they will have to increase the write-offs. My guess/bet is it will happen in the next two months. BUY JAN $30 puts for a hedge or xmas money.
I guarantee that he is not shorting the stock. That is sure prison time. Mozillo is being investigated for just selling. Your statement is the dumbest and illogical I have read for the week I have been here reading and posting. If you do not read his statement as a short term sell you should not be investing.
Again I believe WFC is a solid company long-term. Over a decade you will be fine, but the next year is going to be harsh for WFC and all financial stocks. The CEO is saying the same thing, do you think he does not have his hand on the pulse of the market or his company.
WAMU CEO said the mortgage market is in a "near perfect storm" The stock was at $37, now it is trading at around $20. Read into the CEO statement, he can not scream FIRE or ABANDON SHIP, but I appreciate his honesty, It is refreshing.
Good luck to all. Longs will get a great chance to dollar cost average in.
"In a time of universal deceit, telling the truth becomes a revolutionary act." George Orwell. Stumpf should be commended for telling the truth...it doesn't suprise me when they lie, it suprises me when they tell the truth.