Wells Fargo & Co. (NYSE: WFC) said that it disagrees with a regulatory proposal which would require banks to report the fair value loans of their books under a new mark-to-market style rule.
“We strongly oppose the expansion of fair value as the primary balance-sheet measurement attribute for virtually all financial instruments,” said Wells Fargo Controller Richard Levy a letter on August 19th. “It will only serve to cement a short-term focus on fair-value measures.”
Wells Fargo & Co. (NYSE: WFC) was the only of the top four U.S. banks to publish its opinion among letter writers who named an affiliation, according to the Financial Accounting Standards Board website. The letter was written to the board’s officials, which suggested in May that it may require banks to use a “mark-to-market” style rule in which banks must report the fair value and amortized cost of the loans and some other financial instruments on their balance sheets.
Wells Fargo & Company is a diversified financial services company. The Company provides retail, commercial and corporate banking services through banking stores located in 39 states and the District of Columbia. It provides other financial services, through subsidiaries engaged in various businesses, principally wholesale banking, mortgage banking, consumer finance, equipment leasing, agricultural finance, commercial finance, securities brokerage and investment banking, insurance agency and brokerage services, computer and data processing services, trust services, investment advisory services, mortgage-backed securities servicing and venture capital investment. The Company operates in three segments: Community Banking, Wholesale Banking, and Wealth, Brokerage and Retirement. As of December 31, 2009, the Company provided banking, insurance, investments, mortgage and consumer finance from more than 10,000 stores under various types of ownership and leasehold agreements.
Shares of Wells Fargo & Co. (NYSE: WFC) traded down 1.50% on Monday ending the day at $24.23.
