Relevant:
- Moody’s takes action on $6bn of Wells Fargo-issued jumbo RMBS
- Wells Fargo Pays $6.5M To Settle SEC Charge Over Complex Mortgage Investment Sales
- Wells Fargo Builds CMBS Business Once Dominated by Wachovia
- Wells Fargo CMBS Servicer Ratings Fall on Management Concern
- Tranche Warfare: MBS Investor Sues American Home Over REO Sales
2009-09-17 — market-ticker.org
"According to sources currently working out these loans at Wells Fargo and confirmed by Dan Alpert of Westwood Capital, when selling tranches of commercial mortgage-backed securities below the super senior tranche, Wachovia promised to pay the buyer’s risk premium by writing credit default swap contracts against these subordinate bonds. Should the junior tranches eventually default, then the bank is on the hook."
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