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Posts Tagged ‘Wells Fargo’

Mortgage Settlement Pisses Into the Wind

Posted by Larry Doyle on February 12th, 2012 5:34 PM |

In a nation now all too familiar with a “too big to fail” banking system, a heavily manipulated and high frequency dominated equity market, and an incestuous financial regulatory system, we should not be surprised with a mortgage settlement that does little more than ‘piss into the wind’.

Pardon my cynicism, but one does not need to look too deeply into the recently announced mortgage settlement to understand there is little in the way of meaningful justice embedded in this contrivance. (more…)

Which U.S. Bank Will Wikileaks Expose?

Posted by Larry Doyle on November 30th, 2010 6:28 AM |

Truth, transparency, and integrity.

If I had a nickel for each and every time I wrote those prized virtues here at Sense on Cents, I would have a lot of nickels. I not only espouse these principles in my writing. I strongly believe that the pursuit of these virtues is the foundation for real economic success, if not life itself.

While each of these principles may be defined differently depending on one’s perspective, in terms of transparency, most people would be able to say, “Well, I’d know it if I saw it.” The world is now beginning to see a lot more transparency and accompanying material. How so? Wikileaks. Who is Wikileaks and what are they getting ready to release? (more…)

Mortgage Servicers Are Hugely Conflicted

Posted by Larry Doyle on July 23rd, 2010 12:57 PM |

Information is everything. Those who control the information have immense power. The allegiances of those in control of the info obviously have an enormous impact on how the information is processed and dispensed. The potential for conflicts of interest are significant. Standard business fare, correct? Have these conflicts played out on Wall Street? All too often. How so?

I have repeatedly highlighted the conflicts within our financial regulatory structure. We also know that the credit rating agencies have been enormously conflicted. Anywhere else? Let’s enter the world of mortgage servicing, ….. (more…)

Let’s Revisit Whether the Market is Being Manipulated

Posted by Larry Doyle on March 22nd, 2010 9:52 AM |

Is the stock market being manipulated?

I can not count the number of times I have been asked that question over the last 9 months. Rather than my offering personal opinions which market pundits may view as sour grapes or worse, I want to revisit a ten-minute segment of my interview last evening with Phil Davis.

The segment runs from 29:45 until 40:00 (audio player provided below). If you do nothing else today, please listen to this dialogue between Phil and myself. Neither of us goes into this conversation with agendas or preconceived notions in an attempt to score points. I will offer an edited version here. I think you will find the information, thoughts, and opinions offered to be enlightening. (more…)

Lower Book Value of Banks Highly Correlates with Smoke and Mirrors

Posted by Larry Doyle on March 10th, 2010 11:05 AM |

Why do some banks seem to trade at cheap, if not depressed, levels?

Investors do not trust the valuations of the assets on the books of these banks. I highlighted this very point the other day in writing, “Where is Wall Street Hiding Hundred Plus Billion in Lo$$es?”

A recently released report from the American Banker addresses this point of questionable asset valuations, or what I define as ‘smoke and mirrors’. (more…)

Where is Wall Street Hiding Hundred Plus Billion in Lo$$es?

Posted by Larry Doyle on March 8th, 2010 11:24 AM |

U.S. Rep. Barney Frank (D-MA)

Banks are increasingly healthy, right? Our nation’s accounting rules promote real transparency and integrity in our financial reporting, right? Housing is bottoming, right? No, no, and no!

Why so pessimistic, you may ask? I am not pessimistic at all. I am merely searching for the truth in the midst of the smoke and mirrors on Wall Street and in Washington.

Thank you to our friends at 12th Street Capital for sharing a recently released letter from Congressman Barney Frank imploring the four largest banks involved in mortgage originations to write off second liens they are holding on their books at inflated values.

Why does Congressman Frank believe these loans need to be written off? (more…)

Will Cantwell-McCain Reinstate Glass-Steagall?

Posted by Larry Doyle on December 18th, 2009 11:18 AM |

Might we turn the clock back in an attempt to make our way forward? How so?

Pressure is certainly building in America to curtail, if not derail, the excessive risks embedded in our largest banks. How may these risks be unwound? Reinstating the Glass-Steagall Act, which separated commercial and investment banking activities. If this Act were to be reinstated, that would be the end of the mega-banks (Citi, JP Morgan, Bank of America, Wells Fargo) as we know them.

Who has been harping on this? Former Fed Chair Paul Volcker. Although Wall Street and Washington turn a deaf ear to Volcker, America listens to him intently.

In September, I wrote “Volcker Launches Bombshell on Wall Street and Washington” which highlighted Volcker’s call to reinstate Glass-Steagall. That story resonated far and wide. Now we learn from the American Banker that Senators Maria Cantwell (D-WA) and John McCain (R-AZ) have introduced legislation which would once again separate commercial and investment banking activities. (more…)

Let’s Review the Wells Fargo Earnings

Posted by Larry Doyle on April 9th, 2009 12:02 PM |

A quick review of Wells Fargo’s earnings numbers this morning leaves us with as many questions as answers. 

Wells posted record earnings of $3 billion largely driven by a significant increase in refinancing activity in their mortgage origination business. Their acquisition of Wachovia in the 4th quarter supported the origination business.

Analysts on the street are questioning the depth of detail provided along with the level of reserves taken against future losses.  Highly regarded bank analyst Chris Whalen offerered that bank executives and regulators will present a rosy picture while not providing the support material to back it up.

In regard to the FASB relaxation of the mark-to-market and its impact on bank earnings, Whalen said, “accounting is a wonderful thing.”

Even after a Wells executive commented that the FASB relaxation had no impact on the banks’ earnings, Bloomberg reporters raised questions about that assertion.  Bloomberg asked, “do we believe that?”

I don’t know…do we? Without total transparency it gets very difficult to read the charts and plot the appropriate course of action.

LD






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