Unless I am mistaken, WFC made a profit pre-tax pre-provision every quarter that there was mark to market.
In other words in the eyes of the IRS Wells Fargo had taxable income during the 4th-quarter 2008. The IRS doesnt allow a bank to manipulate its earnings through provisioning for future losses.
Investorzzo, do you understand what is being pointed out to you... WFC was and is and will be profitable with mark to market accounting.
Even without mark to market WFC is not able to impact their earnings by marking up the asset values. I understand this is confusing, but all you have to understand is that WFC did not show any additional income this year by showing their assets as level 3.