Funny, two and a half years ago in my first POTW on this website, I was complaining about the lack of disclosure by REMIC trusts managed by Wells Fargo, see POTW 2-15-06 (below). Thousands of MBS trusts have failed to file numerous forms required to inform investors about the status of the trusts they have invested in. These forms can be analogized to a student's "progress report". How well do you think your child would do if they no longer had to show you their progress reports? Obviously, they would begin slacking off which is one of the major contributing factors to why the entire MBS market has collapsed. Trustees have failed investors which they owe a fiduciary responsibility to.

If municpal bonds have a 50% deliquency (and those are supposed to be the honest/safe ones), imagine how delinquent the trusts managed by Wells Fargo are! There must be hundreds which have not filed in years! Not to mention there are multiple forms that must be filed (10-K, 8-K, etc). I dub the following formula: Wells Fargo's exponential SEC violations (ill think of a better name later):

# of SEC Violations = (# of forms required) * (# of years missed) * (# of trusts)

For example, lets say there are two forms that must be filed which havent been filed for four years for one hundred trusts (as usual, im being conservative here), thats 800 SEC violations. Crazy huh? And to make things worse, within each of those violations are multiple smaller violations. THIS is what is meant by keeping investors "in the dark".