Here’s an obscure media source, The Business Journal of Milwaukee, on WFC’s decision to dump some bad paper:

Wells Fargo sold $600 million in mostly non-performing subprime loans to Irvine, Calif.-based Arch Bay Capital, National Mortgage News reported, citing sources familiar with the sale.

The industry publication said the loans sold for 35 cents on the dollar, about double what most hedge funds were offering.

Most of the subprime loans San Francisco-based Wells Fargo (NYSE: WFC) sold were originated by once-high flying Accredited Home Loans and NovaStar Financial, both of which originated subprime loans in the Milwaukee area.

No one involved in the recent sale is talking on the record, which may be a key reason lenders will look to private transactions to unload bad assets rather than turn to a government-sponsored program, National Mortgage News said.

Hat tip Andrew

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Source:
Wells quietly sells $600 million in troubled subprime loans
Business Journal of Milwaukee, July 14, 2009, 4:21pm CDT

http://www.bizjournals.com/milwaukee/stories/2009/07/13/daily26.html

See also:
A Little Sunshine Would Be Nice in the Secretive Market for NPLs

http://www.nationalmortgagenews.com/lead_story/?story_id=39

Wells Fargo sells subprime duds to Irvine investor

http://mortgage.freedomblogging.com/2009/07/14/wells-fargo-sells-subprime-duds-to-irvine-investor/13547/

Wells sells $600 million in distressed assets at 35 cents on dollar

http://www.creditwritedowns.com/2009/07/wells-sells-600-million-in-distressed-assets-at-35-cents-on-dollar.html

Category: Bailouts, Credit

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7 Responses to “Wells Fargo: $600M in Non-Perf for 35%”

  1. Pat G. says:

    “which may be a key reason lenders will look to private transactions to unload bad assets rather than turn to a government-sponsored program,”

    Terrific!! Those that hold “non-performing subprime loans” need to take the responsibility for unloading them. They caused their own mess, now they need to fix it themselves. Boy, two for two on articles, so far today. Makes me feel good to see people taking stands on things like; principles and morals again. If I’m dreaming, don’t bother to wake me up!!

  2. [...] $12B more to go Jump to Comments Wells Fargo: $600M in Non-Perf for 35% Wells Fargo sold $600 million in mostly non-performing subprime loans to Irvine, Calif.-based Arch [...]

  3. bruerr says:

    Nobody talking? Maybe someone should check how long “Arch Bay Capital” has been in business. http://www.archbaygroup.com/about.aspx

    Hate to be so pessimistic, but could this is another shell entity created by one of the large banks, ala Savings and Loan gimmicks that went largely unpunished?

    When does Congress or the Senate move for forensic accounting at large banks who are recipients of TARP?

  4. gordo365 says:

    So I guess this is why PPIP landed with a thud.

    The toxic mortage bundles are worth .35 on the dollar. (or maybe 1/2 that if these guys paid twice what others bid)

    Smart money isn’t willing to borrow money to buy it at .80 on the dollar.

    Hmmm….

  5. gordo365 says:

    Question? At what price did the stress test assume this stuff was going to be sold for ?

  6. johnk says:

    Arch Capital’s address is less than 5 miles from Pimco’s.

  7. johnk says:

    Hmmm.

    Leucadia National Corp. has a subsidiary called “Arch Bay Capital, LLC”, incorporated in Delaware.

    http://www.sec.gov/Archives/edgar/data/96223/000009622308000015/exhibit21.txt