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Here is an updated research note on Wells Fargo for subscribers:
WFC Research Note Sep 2009 2009-09-30 13:01:30 281.29 Kb.
For those that don't subscribe and wonder what is behind the firewall, we have analyzed the CDS exposure that Wells has, or at least that Wells has reported. If you recall, there was a blog story that broke a few weeks ago detailing the CDS exposure that WaMu had to CMBS from writing protection on the risky tranches in a bid to get investors to buy the securities. Wells inherited this alleged problem in their purchase and it seems as if they may not have even been aware of it. Well, we performed a deep dive and came up with the likely capital calls, as well as some other very interesting tidbits...
wfc_cds_collateral_calls_-_adverse1.gifwfc_cds_collateral_calls_-_adverse1.gif
Although the CDS thing made it across the blogosphere, the more
immediate risk to WFC lay elsewhere, as I have detailed in the research
note above.That is not to say that there is nothing to fear from WFC's CDS exposure, though.
ReggieMiddleton: @Digikelly @pdacosta @hmtreasury @ReutersJamie many thanks, original article is here, much more to the conversation http://t.co/wCr1I59MNYReggieMiddleton: @islesail it matters much less for the states... the US had its own printing press, Scotland, Cyprus and Iceland do not.ReggieMiddleton: @BrettBina the answer to that question is contained in the subscription documents towards the end if the article.
