Wells Fargo Builds CMBS Business Once Dominated by Wachovia

Discussion in 'Wall St. News' started by ASusilovic, Aug 24, 2010.

  1. Aug. 24 (Bloomberg) -- Wells Fargo & Co. is plunging back into the commercial mortgage-backed securities market that helped fell Wachovia Corp., the bank it bought in 2008 for $12.7 billion.

    Wells Fargo added more than 20 bankers and support personnel during the past three months to increase loan originations and bundle them into CMBS, said Ed Blakey, who’s leading the effort with John Shrewsberry. Wells Fargo anticipates selling bonds, though the executives declined in an Aug. 16 interview to give a date.

    “We believe there is going to be a resurgence of CMBS, and we are investing in anticipation of it,” said Blakey, head of commercial-mortgage lending and servicing. “Our pipeline is growing and we intend to be a leader of this market.”

    Wells Fargo is pushing ahead in a market Wachovia controlled before it reported more than $2.1 billion of losses tied to CMBS in 2007 and 2008. Wachovia was the No. 1 underwriter from 2005 to 2007, with $81 billion of commercial mortgage-backed bonds, data compiled by Bloomberg show.

    http://noir.bloomberg.com/apps/news?pid=20601087&sid=a4pbEsFldPxI&pos=6

    Investors must be desperate for yield if WFC is back in CMBS. Interesting.