A tiny sliver of reality.
Bloomberg reports that Wells Fargo is dealing with the $120b. option ARM hangover Wells got when the bank took over Wachovia’s attempts to handle the Golden West “pick-a-payment” Ponzi scheme by simply writing down up 30 percent of the loan principal. In other words, Ken Thompson’s gift is still giving.
Wells modified almost $16b. worth of the loans in the first three quarters of the year, including $2b. in principal adjustments.
