This story appears in Yahoo.
This story has interesting timing. I'm sure that more than a few analysts have considered that Moody's and Wells Fargo are linked through Berkshire H and Buffett/Munger/et al.
Moody's is a joke. Guys, it's been FIVE YEARS since the debacle began unravelling and it's only now that Moody's chooses to post this stuff?
I got news for Yahoo. Subprime lending isn't the only line of mortgage affected by falling home valuations over the past 5 years. There are towns throughout the west coast where home prices fell by greater than 30%. The home prices impact ALL homes, regardless of the mortgage type.
"One out of every three home loans in the United States is now funded by Wells Fargo & Co, whose mortgage operation sits in a business park next door to a country club on the outskirts of Iowa's capital city.
"Wells Fargo scaled back its subprime lending in 2004, well before the housing crash. That move, and the bank's lack of exposure to investment banking and Europe, is why Wells Fargo was the one major U.S. bank to escape a ratings cut by Moody's Investors Service this week."