Wells Fargo SWAPs ....... Warren Buffett, who famously called derivatives weapons of mass destruction, has had a love affair with Wells Fargo & Co, of which his Berkshire Hathaway owns 10%. The fourth largest bank by assets with nearly $1.75 trillion as of the fourth quarter of 2015, was a big bank that steered clear of the 2008 financial crisis by avoiding derivatives mis-steps that bedeviled the Wall Street banks and required a government bailout. With this as a backdrop, the news that Wells Fargo is now engaging in SWAPs derivatives trading might come as a shock – unless one understands key variables.
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