Thread regarding Wells Fargo & Co. layoffs

I don’t think you understand how bank regulation works, and the Fed doesn’t need Wells Fargo, that’s just silly. You appear to be engaged in a high level of magical thinking and no amount of fact will overcome that.

The Fed does not care about the org structure of a Risk, they care about the items in the cease and desist, none of which tell the bank to reorganize. You haven’t read it obviously, so you might want to do that before you make any more wishful assumptions.

@1ihq

Makes no sense to do it. The Fed needs a well-run institution to assist recovery. It already did some unnecessary damages to WF and it won't try to create further unnecessary actions especially now. The most likely action is lifting the asset cap soon. The centralized and independent risk approach adopted by WF is meant to address Fed's concern so again it does not make any sense to breaking it now.

@1pbm WF won’t break itself up, the regulators will. Several years ago, WF was told to take specific actions such as putting a KYC process in place. They put a weak plan together to try to appease the OCC which wasn’t satisfactory. They did this multiple times until we got hit with consent orders. They’re done playing around and, in my opinion, would love nothing more than to break WF up and/or shut segments down. It will be nothing short of a miracle if we pass audits this go around. It’s a disastrous mess.

@1bpm

First as I stated, I don’t know what the Fed will do. I am just pointing out that based on history, WF could miss the Sept date or submit a unsatisfactory plan. The Fed has been waiting two years.

If you read the cease and desist, the asset cap is entirely focused on unresolved issues with risk management programs like Op Losses, KRIs. Bringing in all these new executives has a really limited connection, so I don’t think it matters at all. The bank can’t continue to tick off the Fed, who is ticking them off is irrelevant.

@igu+16ClEmMw What is the point of hiring all the new management teams then breaking it? Maybe you tried to infer from your own angle... All the efforts are for removing the asset cap.

The board of directors are to blame, both past and current members. Incompetence supreme!

We are working for a giant dumpster fire. At this point, I would be relieved to get a package so I could get paid and have the time to look for another job. At this point, I’m so busy working long days, I don’t have time to look for another job even though I would welcome leaving after 20 years.

The two most important nuggets in this article are

1. The Fed has been waiting for a plan for two years, just the plan. The plan is due next month
2. The next step is to break up the bank

As I have said in many posts, this is the single most important issue at the bank. The other stuff people around here seem to worry about is just laughable when you think about the seriousness of the asset cap.

I don’t know if the Fed will break up WF if they don’t get a plan or they don’t like the plan. But both of those scenarios are possible.

@cfn. Oh I’m very aware. I’ve lived it, read nearly every news story, watched the hearings, read the 110 page Directors of the Board Sales Practices Investigation Report in 2017, and the more recent 100 page OCC notice.

My “What am I missing?” question was purely rhetorical. I know what is missing: honor, honesty, humility, business acumen, sound management, common decency, preparedness, focus, integrity, trustworthiness, respect, responsibility, accountability.

So what point, exactly, were you attempting to make?

I don't think it matters. With so many cuts coming, it can be in all areas.

No actually we don't deserve it. The folks on the bottom are paying for sins of the execs at the top. They're getting parachutes, while the folks doing the work are getting a pat on the head, "sorry about your luck", and pushed out of the plane. If you're lucky, maybe you can land on a body of water instead of power lines.

You’re missing that it will not be lifted until we can show we can sustainably manage this company under proper safety and soundness expectations. The people that keep asking why or expect “it should have been listed” are clearly not aware of the real regulatory deficiencies that led up to the asset cap.

Prior poster nailed it. WF never took it seriously and softballed the work. I was on WHSL calls where they laughed about it, saying "good enough", thinking minimum effort would suffice.

WRONG! Over and over and over again...

Gross negligence and incompetence led to even more gross negligence and incompetence.

This company deserves everything that's happened, including the asset cap. Our execs are like toddlers, trying to push the envelope (literally, playing games), throwing tantrums when half-arsed attempts fail, and greedily eating candy all the while.

Grow up. Do the darn work. So much is at stake and now livelihoods are crushed because of gross negligence.

I'm embarrassed by the horrific "leadership" at this company. None are qualified to lead – weren't before and definitely aren't now.

Our former management team were fools for not working to get that cap lifted immediately. That should have been priority #1. And under the new regime, I still haven’t heard a word about our efforts or progress towards prioritizing and accomplishing that goal. It’s truly mind boggling. What am I missing?