Archive for Wells Fargo
Posted To: Pipeline Press
Last week was the Western Secondary Marketing conference in San Francisco. On one of the nights I came upon a mortgage banker who'd had a little too much to drink. Way too much, actually, and he was "as blind as a welder's dog", as Australians say. But he had some interesting things to say about the current correspondent investor community . (I will not vouch for the factual nature of his comments, so don't kill the messenger.) Here's what he told me: "I used to have lots of investors meetings. But now Chase only wants retail, Citi doesn't seem to know what they want, Wells is so backed up in operations they can't do anything, and BofA is...BofA. PHH is opening up a correspondent division, but they only want credit unions and small banks, like Taylor Bean...(read more)Posted To: Pipeline Press
"I don't want to brag or make anybody jealous or anything, but I can still fit into the earrings I wore in high school"...so I overheard at a dinner last night. But most change is inevitable, especially if you're in mortgage banking. Just ask the folks at "the Coach" - Wells is closing more than 600 Wells Fargo Financial offices, cutting 3-4k employees, and will no longer originate non-prime mortgages . The bank said the Wells Fargo Financial offices are no longer necessary after its 2008 acquisition of Wachovia Corp and it will offer mortgage services through its other banking locations. Wells Fargo will cut about 2,800 employees in the next 60 days from its 14,000-person Wells Fargo Financial unit and it will likely cut a further 1,000 in the next 12 months, the...(read more)The Dow has given up its gains for the week, and financial stocks like Wells Fargo (NYSE:WFC), Bank of America (NYSE:BAC), JPMorgan (NYSE:JPM) Citigroup (NYSE:C), Goldman Sachs (NYSE:GS) and Morgan Stanley (NYSE:MS) are all down on the downgrade of Spain’s debt by Fitch Ratings from its prior AAA rating to AA+. Spain had had a AAA rating since 2003.
This signaled to the market that the European sovereign debt crisis isn’t going to go away any time soon, and it’ll probably get worse.
At 2:00 p.m. EDT, the Dow Jones Industrial Average (DJIA) was down by 139.59 to 10,119.40, or 1.36 percent. The Standard & Poor’s 500 Index stood at about 1,085 near the same time, a drop of 17.92, or 1.62 percent. The S&P is down 8 percent so far in May, the worst since February 2009.
According to David Kovacs, head of quantitative strategies at Turner Investment Partners, “The credit issues are not going away in Europe — it’s a simple fact that everyone has to accept. Credit markets are seizing up because investors are concerned. So when they see further downgrades by the credit agencies it reminds them that these issues are not going away and on a Friday before a long weekend you can expect selling off of equities.”
Spain is one of the more important countries in the European Union in the debt crisis, when measured against Portugal, Ireland, Italy and Greece (PIGS). If Spain were to default, most watching the situation don’t believe the EU could save them. If they had to offer close to $1 trillion in response to the Greece crisis, it would be extraordinary what they would have to offer to shore up Spain along with them. And if Spain were to default, the others would assuredly follow.
The approximate $1 trillion would be targeted at all of the EU, with $146 billion for Greece, but it’s unlikely that amount would come close to handling the situation if the crisis continues, and growing opposition to the socialist/welfare countries living beyond their means is growing.
People are getting tired of being productive and having to bail out those who take their wealth and redistribute it to those who are unproductive and lazy.
Limited government is the answer to this, as people would be forced to work harder and create something useful when the misguided props are removed and they have to work for what they want and the lifestyle they want to live.
This isn’t limited to the so-called PIIGS though, as other nations, even Britain are in debt far beyond the guidelines implemented by the EU, and even though these nations are farther above them than others, like Greece with its 13.6 deficit and Spain with its 11.2 deficit, as measured against its GDP.
No country in the EU is adhering to the guidelines, making them all risks going forward.
Unless Europe is willing to follow their own rules, there isn’t a real Europe operationally, and that will remain the same until it is followed.
The EU may need to cut back to the more economically healthy countries until they’re able and willing to adhere to and enforce the debt guidelines in place.
This article (Wells Fargo (NYSE:WFC), Bank of America (NYSE:BAC), JPMorgan (NYSE:JPM) Citigroup (NYSE:C), Goldman Sachs (NYSE:GS) and Morgan Stanley (NYSE:MS) Slammed After Spain’s Debt Dowgraded) was originally developed by and is property of American Banking News. Checkout American Banking News for up-to-date banking news and peer to peer lending news.