Page 1 of 2 12 LastLast
Results 1 to 15 of 18
  1. #1
    Legend
    Points: 174,241, Level: 100
    Level completed: 0%, Points required for next Level: 0
    Overall activity: 3.0%
    Achievements:
    SocialVeteran50000 Experience Points
    alaskaguy's Avatar
    Join Date
    Apr 2006
    Posts
    10,204
    Points
    174,241
    Level
    100
    Thumbs Up
    Received: 6
    Given: 1

    Wells Fargo needs $15 billion in new capital

    Per the results of the stress tests.

    JPMorgan Chase & Co. doesn’t need to raise its capital

    Link:
    Wells Fargo Said to Need $15 Billion in New Capital (Update1) - Bloomberg.com


    "If the facts don't fit the theory, change the facts." Albert Einstein
    "If your worried about falling off the bike, you'd never get on" Lance Armstrong
    "Dress cute wherever you go, life is too short to blend in." Paris Hilton
    "Money is one of the greatest instruments of freedom ever invented by man." F.A. Hayek

  2. #2
    Starter
    Points: 12,736, Level: 34
    Level completed: 13%, Points required for next Level: 614
    Overall activity: 0%
    Achievements:
    Veteran10000 Experience Points
    superman_101680's Avatar
    Join Date
    Oct 2006
    Location
    Indiana
    Posts
    798
    Points
    12,736
    Level
    34
    Thumbs Up
    Received: 1
    Given: 0

    Re: Wells Fargo needs $15 billion in new capital

    So much for my bank! :)



  3. #3
    Pro
    Points: 42,635, Level: 63
    Level completed: 76%, Points required for next Level: 315
    Overall activity: 1.0%
    Achievements:
    VeteranCreated Album pictures25000 Experience Points
    clones26's Avatar
    Join Date
    Nov 2006
    Location
    Urbandale
    Posts
    2,528
    Points
    42,635
    Level
    63
    Thumbs Up
    Received: 10
    Given: 6

    Re: Wells Fargo needs $15 billion in new capital

    I am sure their $3 billion+ of profit from the 1st quarter shows that is possible.


    "I feel sorry for people who don't drink. When they wake up in the morning, that's as good as they're going to feel all day".-Frank Sinatra


    @cyfert26 on Twitter

  4. #4
    Addict
    Points: 65,801, Level: 79
    Level completed: 60%, Points required for next Level: 649
    Overall activity: 20.0%
    Achievements:
    Veteran50000 Experience Points
    erikbj's Avatar
    Join Date
    Aug 2006
    Location
    hiawatha, ia
    Posts
    5,115
    Points
    65,801
    Level
    79
    Thumbs Up
    Received: 141
    Given: 37

    Re: Wells Fargo needs $15 billion in new capital

    these capital requirements in for worse case scenarios. They should be fine, pending the world doesn't blow up



  5. #5
    Legend
    Points: 174,241, Level: 100
    Level completed: 0%, Points required for next Level: 0
    Overall activity: 3.0%
    Achievements:
    SocialVeteran50000 Experience Points
    alaskaguy's Avatar
    Join Date
    Apr 2006
    Posts
    10,204
    Points
    174,241
    Level
    100
    Thumbs Up
    Received: 6
    Given: 1

    Re: Wells Fargo needs $15 billion in new capital

    Quote Originally Posted by erikbj View Post
    these capital requirements in for worse case scenarios. They should be fine, pending the world doesn't blow up
    Whose kool-aid have you been drinking? The conditions that were stressed aren't far from the economic conditions that we are currently facing. They don't even border on being worse case scenarios.


    "If the facts don't fit the theory, change the facts." Albert Einstein
    "If your worried about falling off the bike, you'd never get on" Lance Armstrong
    "Dress cute wherever you go, life is too short to blend in." Paris Hilton
    "Money is one of the greatest instruments of freedom ever invented by man." F.A. Hayek

  6. #6
    Starter
    Points: 16,062, Level: 38
    Level completed: 52%, Points required for next Level: 388
    Overall activity: 0%
    Achievements:
    Veteran10000 Experience Points
    galactawitz's Avatar
    Join Date
    Nov 2007
    Location
    Ames
    Posts
    796
    Points
    16,062
    Level
    38
    Thumbs Up
    Received: 0
    Given: 0

    Re: Wells Fargo needs $15 billion in new capital

    The government said worst case. 10.3 unemployment and an additional 22% decline in house prices. If it gets much worse than that we're all pretty much up a creak anyway.



    No matter how good you are, you're going to lose one-third of your games. No matter how bad you are you're going to win one-third of your games. It's the other third that makes the difference. ~Tommy Lasorda

  7. #7
    Legend
    Points: 174,241, Level: 100
    Level completed: 0%, Points required for next Level: 0
    Overall activity: 3.0%
    Achievements:
    SocialVeteran50000 Experience Points
    alaskaguy's Avatar
    Join Date
    Apr 2006
    Posts
    10,204
    Points
    174,241
    Level
    100
    Thumbs Up
    Received: 6
    Given: 1

    Re: Wells Fargo needs $15 billion in new capital

    Quote Originally Posted by galactawitz View Post
    The government said worst case. 10.3 unemployment and an additional 22% decline in house prices. If it gets much worse than that we're all pretty much up a creak anyway.
    The stress tests are already behind the curve ball. For example, the first quarters' unemployment rate of 8.1% is higher than the stress tests "worst case" scenario of 7.9% for the same period. At the rate of job losses we are experiencing, we will surpass a 10.3% unemployment rate this year- the stress test's worst possible scenario for 2010.

    And there are a number of respected economists that are forecasting worse numbers than those.


    Last edited by alaskaguy; 05-06-2009 at 02:06 PM.
    "If the facts don't fit the theory, change the facts." Albert Einstein
    "If your worried about falling off the bike, you'd never get on" Lance Armstrong
    "Dress cute wherever you go, life is too short to blend in." Paris Hilton
    "Money is one of the greatest instruments of freedom ever invented by man." F.A. Hayek

  8. #8
    All-Star
    Points: 25,470, Level: 48
    Level completed: 92%, Points required for next Level: 80
    Overall activity: 1.0%
    Achievements:
    Veteran25000 Experience Points

    Join Date
    Oct 2006
    Location
    San Diego, CA
    Posts
    1,953
    Points
    25,470
    Level
    48
    Thumbs Up
    Received: 10
    Given: 12

    Re: Wells Fargo needs $15 billion in new capital

    I don't want this to head to the cave, but this "stress test" is, in my opinion, nothing more than politics. A continuation of governmental power grab (and it's not limited to one party or the other).

    Guess what most banks are going to have to do to raise the type of equity the govt now demands? That's right, convert the govt's preferred stock (which WF didn't want to give out in the first place, nice that the govt forced them to accept a govt infusion and not allow them to pay it back except under some unknown set of circumsatnces) to common stock. Guess what happens at that point? The government owns huge chunks of these institutions.

    Nothing like changing the rules of the game whenever you choose.



  9. #9
    Pro
    Points: 29,565, Level: 52
    Level completed: 84%, Points required for next Level: 185
    Overall activity: 0%
    Achievements:
    Veteran25000 Experience Points
    CyPride's Avatar
    Join Date
    Oct 2008
    Posts
    2,508
    Points
    29,565
    Level
    52
    Thumbs Up
    Received: 0
    Given: 0

    Re: Wells Fargo needs $15 billion in new capital

    Quote Originally Posted by alaskaguy View Post
    Per the results of the stress tests.

    JPMorgan Chase & Co. doesn’t need to raise its capital

    Link:
    Wells Fargo Said to Need $15 Billion in New Capital (Update1) - Bloomberg.com
    I do business with WF. I think they are cooking their books and a person who I do business with inside WF thinks that as well. How bad? Not sure, but they are creative!



  10. #10
    Pro
    Points: 36,387, Level: 58
    Level completed: 79%, Points required for next Level: 263
    Overall activity: 1.0%
    Achievements:
    SocialVeteran25000 Experience Points
    drmwevr08's Avatar
    Join Date
    Nov 2006
    Location
    Omaha, NE
    Posts
    3,436
    Points
    36,387
    Level
    58
    Thumbs Up
    Received: 6
    Given: 5

    Re: Wells Fargo needs $15 billion in new capital

    Quote Originally Posted by alaskaguy View Post

    And there are a number of respected economists that are forecasting worse numbers than those.
    And perhaps the most respected investor in the world said that WF was the strongest around and would be just fine. Who knows who is right.


    Nothing to see here mods. Keep moving.

  11. #11
    Addict
    Points: 65,801, Level: 79
    Level completed: 60%, Points required for next Level: 649
    Overall activity: 20.0%
    Achievements:
    Veteran50000 Experience Points
    erikbj's Avatar
    Join Date
    Aug 2006
    Location
    hiawatha, ia
    Posts
    5,115
    Points
    65,801
    Level
    79
    Thumbs Up
    Received: 141
    Given: 37

    Re: Wells Fargo needs $15 billion in new capital

    Quote Originally Posted by alaskaguy View Post
    Whose kool-aid have you been drinking? The conditions that were stressed aren't far from the economic conditions that we are currently facing. They don't even border on being worse case scenarios.
    wall street doesn't seem too concerned since they are all up 20%



  12. #12
    All-Star
    Points: 25,470, Level: 48
    Level completed: 92%, Points required for next Level: 80
    Overall activity: 1.0%
    Achievements:
    Veteran25000 Experience Points

    Join Date
    Oct 2006
    Location
    San Diego, CA
    Posts
    1,953
    Points
    25,470
    Level
    48
    Thumbs Up
    Received: 10
    Given: 12

    Re: Wells Fargo needs $15 billion in new capital

    Quote Originally Posted by CyPride View Post
    I do business with WF. I think they are cooking their books and a person who I do business with inside WF thinks that as well. How bad? Not sure, but they are creative!
    You should be pretty sure before you say something like that. Also, cooking the books could mean a lot of things. Since you've put some thought in to this, please explain what you think they are doing.



  13. #13
    Legend
    Points: 174,241, Level: 100
    Level completed: 0%, Points required for next Level: 0
    Overall activity: 3.0%
    Achievements:
    SocialVeteran50000 Experience Points
    alaskaguy's Avatar
    Join Date
    Apr 2006
    Posts
    10,204
    Points
    174,241
    Level
    100
    Thumbs Up
    Received: 6
    Given: 1

    Re: Wells Fargo needs $15 billion in new capital

    Quote Originally Posted by drmwevr08 View Post
    And perhaps the most respected investor in the world said that WF was the strongest around and would be just fine. Who knows who is right.
    And that individual can hardly be impartial on this topic.


    "If the facts don't fit the theory, change the facts." Albert Einstein
    "If your worried about falling off the bike, you'd never get on" Lance Armstrong
    "Dress cute wherever you go, life is too short to blend in." Paris Hilton
    "Money is one of the greatest instruments of freedom ever invented by man." F.A. Hayek

  14. #14
    Addict
    Points: 140,692, Level: 100
    Level completed: 0%, Points required for next Level: 0
    Overall activity: 15.0%
    Achievements:
    Veteran50000 Experience Points

    Join Date
    Apr 2006
    Posts
    7,605
    Points
    140,692
    Level
    100
    Thumbs Up
    Received: 103
    Given: 173

    Re: Wells Fargo needs $15 billion in new capital

    Quote Originally Posted by erikbj View Post
    wall street doesn't seem too concerned since they are all up 20%
    at what point did wall street show evidence that there was a problem? your statement is like asking a 479 lb fat guy if he is worried about his health...


    As far as depth goes though, the combination of White, Woodbury, Olaseni, Basabe, and Uthoff is much better than Niang, Ejim, Edozie, Gibson. Not because of the top 2, but because of the next 2 or 3. -DeanVogs

  15. #15
    Speechless
    Points: 467,677, Level: 100
    Level completed: 0%, Points required for next Level: 0
    Overall activity: 8.0%
    Achievements:
    SocialVeteran50000 Experience Points
    jdoggivjc's Avatar
    Join Date
    Sep 2006
    Location
    Sterling Heights, MI
    Posts
    31,609
    Points
    467,677
    Level
    100
    Thumbs Up
    Received: 461
    Given: 319

    Re: Wells Fargo needs $15 billion in new capital

    Quote Originally Posted by sunset View Post
    I don't want this to head to the cave, but this "stress test" is, in my opinion, nothing more than politics. A continuation of governmental power grab (and it's not limited to one party or the other).

    Guess what most banks are going to have to do to raise the type of equity the govt now demands? That's right, convert the govt's preferred stock (which WF didn't want to give out in the first place, nice that the govt forced them to accept a govt infusion and not allow them to pay it back except under some unknown set of circumsatnces) to common stock. Guess what happens at that point? The government owns huge chunks of these institutions.

    Nothing like changing the rules of the game whenever you choose.


    "I am altering the deal. Pray I don't alter it any further."


    Chuck Lidell: I paint my toenails with pink and black polish. Problem is, I get more paint on my toes and on the carpet than on my nails. Any advice?
    Maria Sharapova: Don't you beat up other guys for a living? I don't know how to answer this.



Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •  
  • Football
  • Iowa State vs. North Dakota State
  • August 30, 2014
  • 11:00 AM