"Not everyone fell into this trap. Richard Kovacevich, chairman of Wells Fargo, and his lieutenants deliberately steered clear of the riskiest sorts of subprime mortgages"
Nope! According to CFRL study, Wells Fargo DOUBLED its subprime mortgage originations, YEAR AFTER YEAR (since Norwest took over Wells Fargo in 1997), from $230M in 1997 to $16B in 2003. At that rate, there was roughly around $100B in subprime mortgage originations for 2007.. See graph to the side => (Great spin, A-)

"We talked about what other [banks, investment firms and mortgage brokers] were doing," but decided "it's economically unsound" and "doesn't make sense," he says.
Uhh, see graph to the side => (Bullshit, C-)

"By making such risky loans to financially stretched borrowers, "you're basically saying, 'Defraud me,' " adds Mr. Kovacevich, whose bank has avoided the huge losses incurred at rivals."
The reason Wells Fargo has avoided "huge losses" is because they securitized the loans and sold them to investors! The investors were the ones that got hit with the "huge losses", roughly in the hundreds of billions. (Fair spin, maybe you could fool someone who didnt understand securitizations, A+)

"They didn't avoid every misstep. In its home-equity loan business, Wells Fargo strayed from sound lending practices, Mr. Kovacevich acknowledges."
Yeah.. This was planned though, Wells Fargo WANTS to foreclose on people, see similar paper, Wells Fargo Wants You In Special Servicing. (Mediocre spin, B-)

"We made a mistake jumping into this market instead of testing it first for six months," says Mr. Kovacevich. By addressing the problem quickly, however, Wells has minimized damage."
What?? Shareholders have been telling you, YEAR AFTER YEAR (since 2004) to stop predatory lending and YOU RECOMMENDED VOTING AGAINST THOSE PROPOSALS!! Complete bullshit, not to mention investors in Wells Fargo managed CMBS/RMBS trusts have lost HUNDREDS OF BILLIONS.. (Outstanding spin right there, A++)

"In addition, he has resisted following other banks that have cut costs through massive layoffs. "When you do that, you just end up with low employee morale and customer dissatisfaction," he adds."
Is that why you fired 320 employees in your subprime division in one day? (Weak spin, D-)

Oh, and Wells Fargo is the nations LARGEST SUBPRIME LENDER! (according to USA Today, BankNet, etc..)