Wells Fargo & Co’s (WFC) better-than-expected 2Q FY08 results show that WFC is better positioned than its peers to withstand the rigors of real-estate asset write downs. WFC soothed worried bank-stock investors by increasing dividend even as peers are cutting dividend.

We looked up some key real estate loans (REL) data of WFC and its peers on the Gridstone platform. Besides WFC, we picked up Washington Mutual (WM) and Wachovia Bank (WB) in the peer set. A quick analysis of past data and SEC filings of this group shows that WFC has been managing its loan portfolio more smartly than its peers. read more…

Mortgage giants Fannie Mae (FNM) and Freddie Mac (FRE) are suddenly in the news for all the wrong reasons, from issuing large doses of fresh capital and the Fed backstopping short term debt issuance to talks about receivership/ nationalization. As the largest credit guarantors in the troubled mortgage markets, these companies are bearing the brunt of falling home prices, widening mortgage credit spreads, and rising defaults. read more…