Chris Whalen On Wells Fargo & BofA: "They've been pulling reserves out of loss provisions to goose their earnings and hit the analyst targets"
Editor's Note: The video is full-size...it just appears small before playing.
Brand new from the world's best independent banking analyst. Truth and transparency are in short supply at Wells Fargo.
Bloomberg Video - Chris Whalen - Feb. 16, 2011
Christopher Whalen, managing director of Institutional Risk Analytics, talks about Howard Atkins's highly suspect and suspicious decision to resign from his position as chief financial officer of Wells Fargo.
- "There is constant discussion of both Wells Fargo and Bank of America disclosure. I think that they are understating their losses. As a result, they've been able to not only improve their earnings, but they've been pulling reserves out of loss provisions to goose their earnings and hit the analyst targets, which I think is unconscionable. I think these banks should be looked at very hard by federal regulators to see if they're not hiding losses in areas like troubled debt restructuring, and in modifications."