Oct 5, 2015
3:22:31pm
3:22:31pm
It is because they had a very tenous sitution. They had come out with
a capitalization rate at that time of 4%. Banks should be at 8% for minimum, 9 for safe, 10 and above for well capitalized.
During an exit exam with our bank regulators during that time we asked the question if we were at 4% that morning what the conversation would be like (we were at 12% so extremely well capitalized) and the regulator (not knowing we were referring to Wells Fargo's position at the time) told us that "If you were at 4% this morning, we would be talking through the scenarios to shut you down.
During an exit exam with our bank regulators during that time we asked the question if we were at 4% that morning what the conversation would be like (we were at 12% so extremely well capitalized) and the regulator (not knowing we were referring to Wells Fargo's position at the time) told us that "If you were at 4% this morning, we would be talking through the scenarios to shut you down.
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