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User Info	Wells writeoff was on PRIME loans.; entered at 2007-12-01 21:17:40
Stazone72 Posts: 723 Registered: 2007-10-13 Chicago	I must admit WFC has hidden the losses (not admitted publicly to them) better than anyone. Just last year this time they had 17,000 foreclosures in IL, IN, and MI alone. They wrote a ton of Sub-Prime, in fact their lending model was built around it during the heyday. They did stay away from Option ARMs but their overhead on loans were huge. Advertising subsidies to the builders for preferred lender status (kickbacks), higher commision payouts for cross-sells (Helocs), and full commision on Sub-Prime referrals. They recently hired a number of loan officers due to their slightly lower Jumbo rates than the rest of the street. How they don't absorb this on their balance sheet is beyond me. The one nice thing is that you won't get a Buffett pump on this one. Buffett already owns them. 2007-12-01 21:17:40