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Wells Fargo is following CITI Bank and is in the process of leaving TARP.

Posted on Dec 16, 2009 by in Active Rain | 0 comments

Wells Fargo is following CITI Bank and is in the process of leaving TARP. 

Wells Fargo in the process of selling $10.4 Billion worth of Shares to repay the $25 Billion of TARP money. This is interesting information and I did not see anything in the Media Outlets about it.

 This should be front page news or the headline during the evening news. If I would not have been a member of one of the Linked In Real Estate Groups I would not have even known about this.

 Stephen D. Frick, President of Titan Asset Group, Inc. wrote a post about this. He states that the purpose of Wells Fargo to rush to pay-off the TARP is two fold.

 Primarily Wells Fargo and CITI do not want the stigma of being the last big banks, i.e.: the ones who are “too big to fail” being connected with the TARP money for the coming year.

 Secondarily, the FASB accounting changes (166 &167) will be coming on line and many of the “currently” Off Balance Sheet Assets held by large banks will have to be put back on the books.

 The amount is staggering. There are more then $5 Trillion worth of Off Balance Sheet Assets. What is even more fascinating, that the most conservative estimates for losses from the “toxic” OBS assets are in the $500 billion range, hence this explains why banks have been holding back the money to lend. They wanted to keep the funds for Reserves.

 So when you hear politicians and the President scolding “fat-cat-bankers”, they should start educating themselves about the issues and then they could possibly come up with solutions to the issues, rather then just throwing sound bites that resonate with the rest of the public.

 If you are a consumer  who is considering buying  or selling  a home, investment real estate, vacation homes, or beach properties in Southern California, Los Angeles, Century City, Westwood, West Hollywood, Beverly Hills, Culver City, Marina Del Rey, Venice or Malibu. Feel Free to give me a call at 310.486.1002 (USA) or email me at homes@endrebarath.com  or visit one of my websites at http://www.endrebarath.com  Your Pet Friendly Realtor. I contribute a portion of My commission to Local Animal Rescue Organizations.  

 

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