John Stumpf on Fast Money

Outlook 2008: Banks

Excerpt:

What is your outlook?

“For next year, it will be more of this year with respect to housing,” says Stumpf. “But from a Wells Fargo perspective, we’ve been operating (in the do more for consumers model) for 20 years or more. It’s served us well in the past and it will be our mantra going forward.”

What is your exposure to future mortgage weakness?

“About 92% of our mortgages are prime mortgages. Only 8% are subprime,” says Stumpf. “And our subprime loans perform twice as well as other banks. Really this is a very small issue for Wells Fargo although a larger one for the industry.”

What do you think about the teaser freezer?

“I think Paulson has done a terrific job,” says Stumpf. “He’s trying to do the right thing. But it’s not going to be a silver bullet. I suspect President Bush will sign FHA reform. .. But this idea of a bailout doesn’t work. In that case the medicine is almost worse than the disease,” he adds.

What are you thoughts on the Fed?

“I think the Fed has done a terrific job so far,” Stumpf replies. “This is somewhat uncharted territory and they’ve been very responsible in their actions as well as responsive.”