Sometimes all the stars align. Sometimes when they align it turns out you are on the sundiving ship for a "Disaster Area" concert. This is one such case. " Wells Fargo"
Was that clear enough? Now don't get me wrong. Wells Fargo isn't a candidate for receivership. This is more a case of a good bank about to walk into blades of their own construction.
From Marketwatch:
"Wells Fargo continued to strengthen its franchise during the second quarter," said President and CEO John Stumpf. ... We were able to lend more to current customers where we believed it was prudent and properly priced. We grew core deposits while reducing funding costs. ... We also continued to benefit from opportunities in this environment to gain new business and customers through selective acquisitions. ... We're still affected by the weak economy, but we believe we're one of the best positioned in financial services to grow through this adversity and to build an even stronger company for our team members, customers, communities and shareholders."
Financial Performance
"Wells Fargo continued to profitably build its franchise this quarter, at a time when many in our industry are primarily focused on fixing rather than growing their companies," said Chief Financial Officer Howard Atkins.
Anybody else uncomfortable with a strategy of aggressive market share capture? Anybody remember Angelo Mozilo's prognostications about Countrywide's grabbing market share?
But that's not all. no, in one of those undeniable gottcha moments guess who endorsed Wells Fargo? That's right Booyah!
10 comments:
We read it here, first !!!
"Wells Fargo stole $1,000 from me!! Waaah!!" ;-)
At least Wells* doesn't waste money on far too many annoying commercials like WaMu - I particularly hate that "Sweet" one.
Maybe all banks that begin with the letter W are on their way down - since it reminds us of our buddy George W. and the lost decade – this is not meant to offend our friendly commenter @w who is not a bank or politician as far as I know.
*Note: I haven't banked with them after doing some contracting work for them about 10 years ago.
That's it! I'm moving all my money to Washington Mutual!
Shenanigans, I call shenanigans!
Akubi, it's been years since I've heard a WaMu or Wells Fargo commercial. Are these TV ads?
@Lou,
So they don't play the non-stop WaMu ads during your local morning news?
I guess I'm a target market and I'm not taking it - particularly when it is Sweet.
I call shenanigans too - for Everything(tm)!
There is something more to this:
Until recently, the San Francisco bank had written off home-equity loans -- essentially taking a charge to earnings in anticipation of borrowers' defaulting -- once borrowers fell 120 days behind on payments. But on April 1, the bank started waiting for up to 180 days.
'Out of Character'
Some analysts note that the shift will postpone a potentially bruising wave of losses, thereby boosting Wells Fargo's second-quarter results when they are reported next month. "It is kind of out of character for Wells," says Joe Morford, a banking analyst at RBC Capital Markets. "They tend to use more conservative standards."
http://www.forexhound.com/article.cfm?articleID=102800
That's a 6/19/08 article by Michael Panzner. As ever, the 10Q that will let me look at this closer will come out a lot later then today's press release/8K and press conference.
Twas ever thus- recall Lehman's legerdemain last quarter?
This raises interesting opportunities - but I want to read the 10Q before I exercise them.
-K
I am banking on WF being a survivor. I don't keep uninsured deposits there in any case. I just cannot imagine the chaos of having my accounts FDICed. I want access and tracking for my business account, and more importantly my investment accounts. Imagine you have money invested during a financial $hit$torm and you cannot move it around.
I do notice that every month I get a mailer offering a no fee business credit line and often a phone call as well.
Recessions are the best time to gain market share for any business.
But this growth is a bit early... it will be much cheaper to grow in 2009.
Got Popcorn?
Neil
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