Quote:
Originally Posted by Ice
Yeah, I was thinking the same thing. Down here Wells Fargo is a conservative bank that requires you have have good credit with an established history in order to get approved for anything. Since they're my bank I appreciate that a lot since their mortgages weren't the ones we're hearing about on the news. Why they want Wachovia, I have no idea. I did some freelance auditing on the loans at World Savings (and predicted Wachovia was going to have financial trouble when they purchased them) and they are not only crap loans, but there were regulatory compliance issues that I saw and some number fudging. I don't really understand why a conservative financial institution would be in a battle for Wachovia without possibly having the opportunity to even scratch the surface of due diligence at this point.
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I would guess that Wells Fargo wants to buy them because they are devalued so much. Wells should be able to clean that up and while taking some additional risk in the deal; they will also make a huge profit even with the full write-downs.