Wells Fargo has launched a comprehensive review of asset-backed warehouse lending from its European securitised products business, in the wake of its exposure to collapsed bridging lender Market Financial Solutions, according to several 9fin sources.
The review will include site visits to specialist lenders by US-based compliance staff, as well as a comprehensive questionnaire on lender policies, procedures, lending, authorisations, compliance arrangements, staffing levels and AML measures, according to multiple sources familiar with the situation.
The probe will also include a detailed examination of collateral, the sources said.
Wells Fargo started lending to MFS last year, as part of a broader build-out across European securitisation after the Federal Reserve lifted the bank’s asset cap in mid-2025.
Competitors describe Wells lending very actively after the asset cap was lifted. However, some of its positions date from earlier in the year — for example, it joined Together’s main facility banking group in January last year. This was an evolution of a longstanding relationship with the specialist lender, which included buying bonds outright and funding its private term deal Fairway.
Wells has also recently cropped up as a joint arranger on an RMBS deal for Pepper Money, suggesting it might play a role in Pepper’s warehousing capabilities. It has also recently been active in commercial real estate, investing in logistics and holiday park deals for Blackstone. Other RMBS deals, include some for Cerberus, have benefitted from liquidity facilities provided by Wells.
Wells Fargo declined to comment for this article.
