Housing worst since Great Depression?

Wells Fargo: Housing worst since Great Depression

NEW YORK, Nov 15 (Reuters) - Wells Fargo & Co (WFC.N: Quote, Profile, Research) Chief Executive John Stumpf on Thursday said the U.S. housing market is in its worst slump since the Great Depression, but the second-largest U.S. mortgage lender has only small exposure to securities that have caused mounting losses at some rivals.

Speaking at a Merrill Lynch & Co banking conference, Stumpf said he has experienced three housing cycles, "and this is the worst I've seen." He called the current downturn the "steepest, fastest, most prolonged decline in residential real estate that we've seen in a very long time," with home prices falling "deeper and faster" than expected.

While saying "Wells Fargo is not immune from the economic environment," Stumpf said the bank has "minimal" exposure to the asset-backed securities and collateralized debt obligations that have resulted in more than $40 billion of write-downs industrywide.

Comment: Barclays joins write-down club:

Barclays to Make $2.7 Billion Write-Down

Business / World Business
Barclays to Make $2.7 Billion Write-Down
By JULIA WERDIGIER
Published: November 16, 2007
The write-down on securities related to the U.S. subprime mortgage market was lower than expected, calming investors who had recently sold shares of the bank.