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Games Banks Play (wfc)

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Jingle mail, Jingle Mail, Jingle all the way.....

This borrower couldn't pay and thus stopped doing so. This should generate a "NOD" (Notice of Default) and ultimately lead to foreclosure, right? It should result in an impaired asset which might be sold to some other company (at a discount), right?

Well, it got sold all right. But look at who it got sold to..... (click for a larger copy)


Yes, Wells bought the loan from.... itself?


I have the original purchase documentation on the mortgage from July 21st 2008, when it was bought (by Wells in Frederick MD) from the original funding company in Tempe AZ.

Now, when the borrower defaults, Wells buys the loan from itself?

For what purpose?

The obvious questions that arise are:

1. Is this loan "suddenly new and thus not yet non-performing" after playing this shell game? And if so, how many more "performing" loans does Wells have now that they haven't been "non-paying" for at least 90 days (having "just been acquired")?

2. Was it sold at Par?

3. Was this accounted for as a "true sale" when it was in fact "sold" from and to the same company in a different office location?

You don't think there might be a little shell game going on here do you?

Doesn't anyone remember that the S&Ls did this same sort of crap (with the twist that in many cases they colluded with each other to shuffle them around between institutions) as they swirled the bowl?

Inquiring minds want to know the answers to the above three questions, and if we had honest regulators they'd be demanding answers to those questions too.

Is this just a one off? Or are the banks playing with themselves?

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Oops - they're supposed to set up a seperate entity which they fund, paying the execs silly bonuses to keep quiet and get around the bonus rules they might at some point decide to implement just after the horse has bolted.

Musical non-performing assets - It's the new black.

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Debt is wealth remember, Wells just got richer. :unsure:

Wells Fargo to use internal funds to repay TARP

NEW YORK (Reuters) - Wells Fargo said on Tuesday it will repay its $25 billion (15.5 billion pound) U.S. government bailout funds without raising additional capital through an additional stock offering.

The San Francisco-based bank, the nation's 4th largest with $1.25 trillion in assets, joins a growing number of the nation's largest lenders attempting to repay the government for assistance last fall as part of the Troubled Asset Relief Plan, or TARP.

Bank of America Corp has offered to repay $20 billion of its $45 billion in total government investment, according to media reports on Tuesday.

A Wells Fargo spokeswoman declined to comment on when the bank will repay its U.S. government stock investment.

Wells Fargo shares dropped 4.76 percent in Tuesday trading as part of a larger retreat in bank stocks, closing at $26.21 per share. But the stock cut some of its losses after the announcement by Wells Fargo Chief Executive Officer John Stumpf in a Bloomberg Television interview.

In after-hours trading the stock was up 5 cents.

(Reporting by Joe Rauch; editing by Carol Bishopric)

And in other news...

Wells Fargo fires exec over Malibu house scandal

By Elinor Comlay and Laura Isensee

NEW YORK/LOS ANGELES (Reuters) - Wells Fargo has fired a senior vice president after investigating reports she held lavish parties at a foreclosed beachfront Malibu house owned by the bank.

The fourth-largest U.S. bank said in a statement on Monday that it had terminated one employee, senior vice president Cheronda Guyton, who it found had violated its policies.

"We deeply regret the activities that have taken place as they do not reflect the conduct we expect of our team members," the bank said in the statement.

Wells Fargo, which received $25 billion (15 billion pounds) in government bailout money last October, was criticized earlier this year for planning events at upscale Las Vegas hotels for top mortgage employees. It said in February that it did not plan any more of these "recognition events" this year. It said at the time that such events were part of its culture, and that it believes in rewarding hard-working team members.

Guyton, who had been responsible for Wells Fargo's foreclosed commercial properties, used the 3,800-square-foot beachfront house on Malibu Colony Drive on weekends for parties, one of which had guests arriving on a yacht, the Los Angeles Times reported, citing neighbours.


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It may have something to do with usury laws. North Dakota (the location of the original Well Fargo entity) was a very popular state for the issuance of credit cards and the booking of loans as it had very lax usury laws.


I am not sure if Iowa (the location of the new Wells Fargo entity) is now more advantageous than North Dakota.



Edited by LuckyOne

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