Wells Fargo is collapsing because of its HUGE exposure to oil & gas companies

Wells Fargo & Co (WFC.N) has the largest exposure to loans to energy companies among major U.S. lenders, a report from Raymond James said, amid concerns that banks may have to set aside more money to cover bad loans to the industry.
The bank also topped the list with the biggest exposure to energy companies whose public debt was trading less than 35 percent of par, the brokerage said on Thursday.

Wells Fargo was followed by Bank of America Corp (BAC.N), Citigroup Inc (C.N), Comerica Inc (CMA.N) and BB&T Corp (BBT.N).

http://www.reuters.com/article/us-usbanks-research-idUSKCN0RO29220150924
West Virginia Woman Sues Wells Fargo Over Alleged Home Loan Modification Misrepresentations
In early 2015, she contacted the company about modifying her loan. At that point, a rep for Wells Fargo Home Mortgage instructed her not to make payments while the modification was being processed.
Relying on the information from the rep, the woman stopped payment, while providing all necessary paperwork for the modification.
In June 2015, Wells Fargo re-sent the woman a packet requesting duplicate documents. The following month, the woman says she began receiving debt collection calls.
When the woman called Wells Fargo about the collection calls, she was told that her account was mistakenly removed from the modification program and placed in foreclosure.
West Virginia Woman Sues Wells Fargo Over Alleged Home Loan Modification Misrepresentations
Wells Fargo & Co, No.3 U.S. bank by assets
* “At current price levels, we would expect to have a higher oil and gas losses in 2016.”
Morgan Stanley, No.6 U.S. bank by assets
* “We’ve seen an increase in negative marks within corporate loan book, focus is around energy.”
http://www.zerohedge.com/news/2016-01-21/what-big-banks-say-about-their-energy-exposure

Wells Fargo to pay $1.2 billion for bad mortgages

Wells Fargo & Co. said Wednesday that it has agreed to pay $1.2 billion to settle a long-running suit that accused the company of “reckless” lending and leaving a federal insurance program to pick up the tab.
The agreement settles civil charges with the U.S. Justice Department, two U.S. attorneys and the Department of Housing and Urban Development
The government sued Wells Fargo in 2012, accusing the U.S. mortgage lender of engaging in “regular practice of reckless origination and underwriting” of government-backed loans. The action was one of several brought under the Federal False Claims Act against a lender accused of bilking the Federal Housing Administration, which has historically backed loans to first-time buyers and those with low incomes.
http://www.marketwatch.com/story/wells-fargo-to-pay-12-billion-for-bad-mortgages-2016-02-03?link=MW_home_latest_news