I think the Asset Cap is a blessing and a curse at the same time. Since Wells can’t lend right now over 1.95 trillion, they will be in a better shape then the other big banks in the long run. There will be a lot of Loan defaults because of the Unneployment at an all time high in the last 30 years. Since Wells is not allowed to lend as much, their loan losses in the next few years will not be as bad as let’s say BAC and JPM and Citi.
8 replies (most recent on top)
OP may be right in some cases. But most failed loans are sold off to subprime lenders and we still make money. Over all the Cap has cost us billions.
Agree with the OP. This economy about to hit a brick wall. WF is, oddly, better situated to endure it than some competitors due to the asset cap. Mortgage delinquency at a 10-year high right now - says it all.
Keep dreaming... there will be loan losses and wf was a huge lender to oil and gas, they have a specialty lending group to hospitality, they are big in gaming, many airline loans on the books, and tons of real estate exposure. On the consumer side, big exposure in housing, subprime auto loans... ya WF has some big alligators in its portfolio. Other banks will have their share of issues. The thing that was most telling is the dividend cut. Told me they don’t have enough capital to weather a bad storm.
Aren't you precious, bless your heart.
Lol
I thought the Feds lifted the Asset Cap??
you're an id–t.
Bless your heart.