Thursday, September 17, 2009

Trouble at Wells Fargo (WFC)

AlphaNinja - All is not "Well" at Wells Far---just kidding, I won't write something that cheesy.

But seriously - a look at the performance metrics of Wells Fargo's (WFC) loan portfolio is incredibly troubling. On most of their property loans, Wells' delinquency rates are far worse than the national average.

A peek at their 1-4Family loan portfolio, nearly 30% of their total loans, shows much worse performance than the national average - possibly due to Wells' heavy California concentration (courtesy of the FANTASTIC site wmlabs):

Those numbers are particularly worrying when you look at the generous way Wells values its loans higher their "fair value." The $34 billion difference between fake value and fair value would wipe out much of the equity keeping Wells solvent....

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