Wells Fargo has so far managed to avoid most of the turmoil that has gripped other lenders which puts the Bank in an interesting position. Like a football team that is losing but cannot get their quarterback onto the field Wells Fargo will feel the impact of new laws, a weak dollar, sagging home prices, and foreclosures. Their CEO John Stumpf said “We have not seen a nationwide decline in housing like this since the Great Depression.” Home equity loans from Wells Fargo may go bad, and foreclosures may result as over 200,000 people are now unemployed as a result of the mortgage crisis. Some of them have mortgages from Wells Fargo. For a bank that was relatively insulated the frustration continues to mount. Here is why:

Stumpf says he’s concerned that the frightening downward spiral in housing has not played itself out. Stumpf says Wells Fargo remains in a more stable condition because it never altered its lending policies to include more exotic mortgages, such as 100 percent, interest-only loans, and adjustable rate loans that allow borrowers to pay less than the principal due. Wells Fargo must sell its loans to investors who are not interested like they once were.