How can Wells Fargo say it made a profit? 3 Billion?

[blueinindiana]

I think it got upwards of 40 billion dollars taken from the tax payers of the United States.

I mean if they can turn a 3 Billions dollar profit that fast why did they need any money in the first place?

Or did they just take 3 Billion out of their welfare check and call it a profit?

[global1]

1. I Had Kind Of The Same Question And Also - How Does Wells Fargo Make It's Money?........

where did that $3 billion come from?

[acmavm]

2. It's the new math. It's called the Geithner method.

[LostinVA]

3. I believe Wells Fartgo didn't take/get any bailout money

[blueinindiana]

4. Yes they did

http://www.cbsnews.com/stories/2009/02/09/eveningnews/main4788018.shtml

[Donnachaidh]

6. yes they did -- reported to be around 25 billion. n/t

[Romulox]

5. "pro forma accounting". Their "profits" are taxpayer subsidies. nt

[quiller4]

7. The profit is computed after pay back and they didn't need it.

Wells Fargo and Key didn't need taxpayer money but were pressured to take it. If all the very large banks took some money the thinking was it would prevent a run on the banks that really were desperate for bail out. That worked. There was no run on banks. Markets stabilized and healthy banks started loaning again.

Wells Fargo never was big in the subprime market. Loans to small businesses make up a much larger share of WF business and the fact that WF and Key are making small business laons again is a big part of the reason the credit crunch is easing. Those banks that had the fewest bank loans on their books last fall are now showing profits and paying back taxpayer $$.

[valerief]

8. I'm calling my thousand dollars in the bank a billion dollars. Now I'm rich!!!!

I think that's how it's done.