Friday, September 18, 2009

Snake Eating Its Own Tail

So you wonder how Wells Fargo manages to positive quarters in a row during the greatest credit crisis of all time. It’s easy. They have a ready-made buyer for any crap they want to sell at any price. Don’t believe it?
This borrower couldn’t pay and thus stopped doing so. This should generate a “NOD” (Notice of Default) and ultimately lead to foreclosure, right? It should result in an impaired asset which might be sold to some other company (at a discount), right?
It got sold all right – right at the “120 day” late point where Wells counts a loan as “defaulted.”
But look at who it got sold to…..
Wells Fargo has literally become a snake eating its own tail.

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