I saw this morning that the Wells Fargo Chief is complaining about the Treasury's Stress Test that is currently underway and is designed to essentially determine which banks are solvent and America can depend on and which banks (read bank's executives) no longer have any business calling themselves bankers.
I've wanted to be short Wells for sometime now because I think the Golden West...err...Wachovia assets that it took on back in Q4 are a lot more toxic than we think. While Citi and BofA have taken their lumps and will probably be on the upswing for sometime I think Wells secrecy regarding their balance sheet and marks belies a dirty little secret.
That assumption was only confirmed by this article this morning in Bloomberg. Their chief is complaining that the stress test, that all major multinationals are submitting to is unfair and "assinine" because it just makes their stock susceptible to short sellers. Well methinks this guy has just done his firm a major disservice, because if the rest of the shorts are like me, they are reading this as a HUGE RED FLAG this guy has just raised around his stock. Especially when he submits that his firm does their own periodic stress test which is much more scrutinous than the Treasury's, but then complains about the potential results of the Treasury's stress test.
I say Citi and BofA are up for a while, and Wells is getting ready to take a dive. Thanks Golden West!
