Wells Fargo is best of class...and TOXIC as hell

Anyone who may be wondering just why Uncle Warren seems so predisposed to snugly deals with insolvent financial firms and crappy rating agencies may want to consider the implications in another one of his backroom deals to both use his reputation and confidence building inertia to supply operating capital to one stinky, smelly and apparently preferred investment vehicle for the likes of John Paulson and Davie Tepper. I have, for a long time, expressed the total ridiculousness of the economic merits and synergies of BAC and Countrywide. But over inflated egos and dependence on the grand art of the capital raise as the engine of the 2% management fee for incompetent management diligence is quite popular on Wall Street and can overcome any obstacle that might get in its way - including a really shitty deal. This is why it so important for real managers not charge a management fee at all - after all, amatuers have to charge the fee because that's the axiom - its the main way they make money.

However, none of this forgives the fact that by some mysterious means Uncle Buffet, owning a large share of one of the most corrupt mortgage pumping institutions in domestic the financial world, was neatly omitted from the recent legislation that implicated even the grandest accounting control frauds going - JP Morgan and Goldman Tax. Somehow, one of the main engines of highly leveraged banking and mortgage products - Wachovia - was not even worth a mention next to the likes of WAMU and Countrywide...Wachovia only went bankrupt because of their fraudulent accounting and models for mortgage products - remember.

In fact, during the height of their demise, a friend of mine wanted to wire a payment of roughly $200,000 to a vendor in Europe only to be told that Wachovia could not execute the wire...it took weeks for them to get the wire transmitted though he had his business cash in their accounts.

Now, Wells Warrenovia Fargo has risen to the grandest of heights and pulled a Bank of Countrywide Lynch and actually competed for a useless liability called "Wachovia". The results should end up being similar. The reality, however, is that if you ever questioned the motivations of the master of integrity and character in the insider trading game...you now have your answer. The investment that Buffet made into BAC was a highly orchestrated manipulation by not only regulators and the government but also Buffet and Wells Warrenovia Fargo. There is simply no practical way of understanding how this organization is NOT on the list without some backroom dealing. Not to mention the fact that Wells is a totally predatory banking institution and has had a consistent pattern of deceit and manipulation in their markets...to find out more about this pristine piece of stinking excrement for an institution, one need only refer to the practices represented in this article: Reason to stop banking with Well Fargo

Think about it - if things are so bad that they are already calling in the last remaining guns via the Buffet slam...then things are really not pretty indeed. My view is we should be prepared for a liquidity crunch of such magnitude that it makes 2008’s small by comparison.