A failure of a bank this size is highly unlikely due its size. We will have larger issues as a country if that happened to JPM, BAC, C, or WFC. If the bank were regional, all bets are off. In the past, we prided ourselves as being the largest CRE, main street, middle market, etc. lender. I think the pandemic will alter the bank's strategy in this regard.
The asset cap, high eff. ratio, and low interest rates will certainly lead to reduced salaries. Think of it this way: If you owned your small business and weren't making the money you have been accustomed to, what would you do? Most likely, you would reduce (or eliminate) the hours of your workers and look to work with cheaper priced vendors to limit the reduction in your compensation (dividends). The same is happening now.
WFC changing the 3rd party vendors its working with, eliminating/streamlining functions, and you can see that new roles dont pay as much. Bonuses will likely be lower in March too. When Charlie talks about the dividend cut, he will have to tell the investors that he is eliminating XX in expenses to justify that everyone is feeling the pain of the current environment for the benefit of WFC long term.
The difference is that team members are short term, while the investors are long term.
Originally posted by @xel+15RXrUe0.