https://www.wsj.com/articles/wells-fargo-to-tech-vendors-please-send-us-a-check-11564756857
Wells Fargo CTO Saul demands all contract companies send WF a rebate check of 2.5% for all the business WF has given them.
Thia company has to be shut down.
24 replies (most recent on top)
It's funny someone posted that the internal IT audit department was forcing contractors to work without overtime pay but their asking the contracting companies cash back. This place is garbage.
They're animals
This has to be satire! Except it’s not and every contractor vendor got the memo. Aggressively looking for a new gig.
This is too funny. One of the mainframes in Mortgage is not even owned by Wells, it belongs to Fidelity. So Fidelity wants their 2.5% too. And while you are at it, since Wells is boasting a 19% profit, how about 10% across the board to all making less than 70k.
Can I have cash back?
The rate for contractors are cr@p to start and they want cash back? Go scratch!!!
I think they should shutdown the bank.
Stealing from customers and employees and now asking vendors for handouts!!!
My guess is since this is voluntary most vendors won't comply. Just watch they'll hire more contractors to cold call them to ask for a refund. id–ts.
When did Vladimir Putin become CEO?
The rate they pay contractors is poor much less cash back.
How about a 2.5% raise across the board for all the work we are doing because of the exact same reasons they are asking for rebates. It’s completely congruent logic right?
I've never heard of anything like this....it's like Wells is blaming their vendors for their sh!tty management and ineptitude. Did ANY of these vendors have a direct connection with these past scandals? If there was a vendor involved, just drop them, or take them off the preferred vendor list. I'm a contractor and I'm fairly apathetic, but find the tone of this embarrassing and desperate.
How the hell can anyone justify giving these dumb$ss WF execs bonuses? You qualify for a paycheck and nothing else.
this is nuts
Absolutely shameful and disgusting that they turn around and ask contractors for "cash back" because they were hired to fix your company's antiquated computer systems.
Since this is a voluntary request like begging on the streets or opening up a GoFundMe page NONE OF THE VENDORS SHOULD COMPLY!!!
Must be really bad if WF has to gravel with its vendors for money. So glad I left. Just hope the severance checks don’t bounce!
Outrage
WF is disgusting.
If you rescue me and I get out of here will the bad people try to hurt me?
Now they're trying to blame vendors for their fines and legal costs what low lifes.
I want cash back too where's my cut?
What audacity to ask for money back ut means they're really struggling.
3 to 7% of contractors in IT will be cut.
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Finance
Wells Fargo to Tech Vendors: Please Send Us a Check
The bank, trying to cut costs, says tech vendors benefited from its regulatory problems
Overall expenses fell 4% at Wells Fargo in the second quarter, but that was largely due to factors outside management’s control. Photo: Victor J. Blue/Bloomberg News
By Rachel Louise Ensign
Aug. 2, 2019 10:40 am ET
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Wells Fargo WFC -0.59% & Co., in cost-cutting mode, recently asked outside technology consultants to refund some of the money the bank has spent with them in the past year.
The request for rebates came from Saul Van Beurden, the bank’s new head of technology, at a July meeting with vendors, according to people familiar with the matter and emails reviewed by The Wall Street Journal. The bank told the vendors, who in many cases supply the bank with contract tech employees, that this was because they had benefited from increased business due to Wells Fargo’s regulatory woes.
The bank characterized the rebates, for 2.5% of what vendors had earned, as voluntary, according to the emails. Wells Fargo officials told vendors that they had to decide whether to participate or not by close of business on Aug. 2. The bank will provide instructions for sending the “rebate checks” at a later date, the emails said. A Wells Fargo spokesman declined to comment.
Cutting CostsNoninterest expense at Wells FargoSource: The company
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Wells Fargo has been dealing with a morass of regulatory problems since its 2016 sales scandal. Revenue growth has flagged, so the company has taken an ax to expenses with mixed results. The bank has walked back some expense targets as it continues to operate without a permanent CEO. It still says it will reach a $53 billion annual expense figure in 2019, a more than $3 billion cut from last year.
Executives have said that spending on technology workers has been one reason expenses have remained higher than the bank would like.
The meeting with vendors was held on July 18 in Charlotte, N.C., the people familiar with the matter said. Mr. Van Beurden, whose move to Wells Fargo from JPMorgan Chase & Co. was announced in January, outlined other cost-cutting measures, including eliminating offices with low occupancy and cutting back on middle management, the people said.
The bank’s technology unit also plans to cut contractors by between 3% and 7%, according to the emails. Many of the bank’s technology jobs are held by outside consultants, a typical practice in banking.
Some of the contractor roles involve helping the bank fix regulatory problems, while others focus on the technology behind more routine aspects of the business.
Overall expenses fell 4% at Wells Fargo in the second quarter from the prior year, but that was largely due to factors outside of management’s control like lower Federal Deposit Insurance Corp. assessments. Salaries, benefits and equipment costs rose.
The bank’s spending on “risk management including data and technology have exceeded expectations and are anticipated to continue,” Chief Financial Officer John Shrewsberry said on the bank’s most recent earnings call.