Real Estate Lender Implosion

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Wells Fargo on bad auto loans

Wells Fargo (WFC) for example, reported last month that it charged off $1 billion in auto loans last year, 3.5% of its portfolio, compared with $857 million in 2006. The bank says it expects a higher write-off rate this year.

While the nation has been transfixed by rising home foreclosures, scant attention has been paid to what is usually a consumer's second-largest purchase: their car or truck.

An executive at another big auto auctioneer says that easy subprime car loans in recent years are a big reason for the flood of repossessed cars.


see #msg-26810227 for the full story

http://www.usatoday.com/money/autos/2008-02-13-repo-man_N.htm