Wells Fargo, Fifth Third Add to Predictions of Higher Defaults

Discussion in 'Stocks' started by ASusilovic, Sep 16, 2009.

  1. Sept. 16 (Bloomberg) -- Wells Fargo & Co., the nation’s biggest home lender, expects unpaid loans to increase, adding to signs that the U.S. real-estate crunch will squeeze bank profits the rest of this year.

    Wells Fargo wasn’t accruing interest on $15.8 billion of loans as of June 30, or 1.9 percent of the total, Chief Executive Officer John Stumpf said at an investor conference today in New York. So far, Wells Fargo has taken $7.3 billion of the $41 billion in home loan losses predicted when it acquired Wachovia Corp. last year, and costs tied to the takeover are likely to be less than the estimated $7.9 billion, he said.


    Short this stuff
  2. Mvic


    Agreed, these guys are in trouble unless they get some help in the form of new bailout programs which will likely not be forthcoming over the next couple of months at least.