Wells Fargo Fudged Their Numbers

[godoftrading]

RGE Monitor

Wells Fargo changed its write-off policy on April 2008: only loans 180 days past due would be written off instead of loans 120 days past due as before--> Wells Fargo earnings would have been $265m lower and results would have come in below estimates without the accounting change

 

[Abreutime]

I heard about the change a couple months ago. Did the "expectations" factor the change in policy into analyst predictions? Without reading up on it, I suspect so, so it's a non-issue.

 

[FinanceDude]

More tricks by dicks.........

 

[clifp]

It is pretty much a non-issue. According to the CEO during the conference call, the timing of the writedown was to better reflect the time it is taking for Wells Fargo to restructure problem loans. 120 day late loans are still included in future loan loss provisions, so any impact on earnings is negligible.

BTW, you short on BAC at 27 has worked great closed today at 32.30. Anything brilliant calls.