Thursday, April 9, 2009

Wells Fargo's Traditional Strength

Wells Fargo CFO Howard Atkins discusses the banks $3 billion reported first quarter 2009 earnings. Atkins hypes the impact of mortgages to the bottom line, due to low interest rates and foreclosure selling no doubt, but shockingly admits at the 7:45 mark that with the writedowns that would have been required by Mark to Market the bank actually lost money on the quarter.

Sounds like the biggest earnings driver came from droping the dead weight of FASB 157. Don't rush out to buy Wells Fargo just yet.

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