Many keep saying how people leaving in droves and WFC laying off the most experienced/knowledgeable staff will have severe consequences down the road, and then the earnings report shows that the bank is doing better than ever. I'm starting to think leadership has a point. As long as you have warm bodies to fill the seats, the company will continue to function without issues. Experience and knowledge don't mean as much as we had hoped.
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False
I guess you don't understand what an Asset Cap is....for every dollar in "growth", the Bank has to "lose" an equivalent amount. The only way to improve profits with this constraint is to reduce operating costs.
@2kvg Those lines were not profit generating, one of the main reasons we dumped them
@1swl+1eOtfTVX Guess you missed that half of that beat was due to selling off Corp Trust and WFAM and that future quarters will take a revenue loss from those businesses… or does that not fit your ignorant narrative?
@ixl+1eOtfTVX nice try
I heard tech is affected
@sbs guess you missed beating the revenue estimates by 2B+ or does that not fit your ignorant narrative?
I’m in Ops. Security Control and Transfer team as an example has been completely turned over. Business Support Services had 13 people assisting us, down to 6 currently.
@ixl I work in Wealth Management. Not a single team has had "100% turnover." What are you talking about?
Some business lines are suffering. There are some teams in Wealth Mgmt that have had 100% turnover in the last 12 months. Other teams are running at 50% staffing levels. They have lost a ton of people who are leaving and taking friends and high performers to Principal Financial. Losing a high combination of quantity and quality in these teams is having enormous effects. You have software teams trying to deliver products to teams, that now have no experts to test/validate the products being delivered. It’s real ugly for these teams right now.
While the bank as a whole might not show signs, there are pockets within that are on the verge of crumbling.
@enk Bingo.
"Many keep saying how people leaving in droves"
Aside from the people we laid off that the company wanted to lose, no one is leaving in droves. In fact, the bank is disappointed that we haven't lost more to "natural" attrition and might have to resort back to layoffs in order to thin the headcount.
What you see is 100% talk and no action. People puff out their chest and insist they're heading out the door, but it's all deadweight talent that can't find a job anywhere else.
This is textbook Jamie Dimon JPMC playbook being run by Charlie. WF made money by cutting expenses and by releasing loss reserves not by actually growing business.
Love how @OP tried to compare “severe consequences down the road” with the next quarters earnings report. Way to only look at what’s directly in front of you.
It’s almost like money isn’t made in the branches…
I really don't understand how we are making money. 5+B again last quarter. Yet, when I go to the local branch, it looks like they are moving out. Only a couple of staff, and all the furniture has been pulled out. I guess that must be their new model. But I go across the street to USB and there are staff right there ready to help. Go figure.
Well, I think if anything it proved WFH is an excellent business model and significant ongoing real estate expenses can be cut for fatter margins.
However, I feel earnings were kind of lipstick on a pig. Loans are flat to down and the talent needed to grow the business is leaving in droves. WF is a big zombie bank trudging along, and with Charles in charge the regulatory issues are going to bite back eventually. The bank is an operational mess, and if all the spend goes to buybacks and not fixing the business the asset cap will loom large for years.
Don't be fooled by nominal amounts in anything, including revenue / profit. Inflation is a monster right now and will make it look like "profits are up" much more than they are. If you get $5B in profits when a trip to the grocery store is $100, and are still getting $5B in profit when it's $200 to get groceries, you're losing ground. What we can do with that money gas drastically decreased. I'm sure in Zimbabwe every company in the country had record profits the year they issued those trillion dollar bills. How much did that really mean?
Don't get me wrong, it was a decent quarter, but we need significant growth in profits just to keep up right now.
You are correct.