"Our expenses are just way WAY too high"

http://kvgo.com/AB/bernstein-Wells-Fargo-may-2020

Watch the whole thing.

None of what follows should be considered investment advice - please be sure to consult with your financial advisor.

Some key comments:
on loan loss provisions: "I wouldnt put number on it, but next quarter, I expect that number to be very significant"

"no one anticipated an environment like this"

on expenses: "We have over 1/2 BILLION in expenses we didnt anticipate" - do the math, thats about 10,000 employees.

i like this one - "We should be very conscious of the environment out there....we are citizens of the community....we have to be VERY careful of what we do and WHEN we do it" .... let that one soak in for a few minutes. The bank is very aware of the current political environment.

The whole video is worth a watch. Even if you dont like him or the company, its better to go into the future with eyes wide open.

After CHK bankruptcy today, and Wells has about 3% of loan portfolio invested, me thinks that dividend is none too safe. I dont think its going to zero, but i certainly think its gonna be cut.

When a company cuts its dividend, stock usually takes a haircut by 20-40%.

For employees who hold WFC in their 401k, this kind of information is useful.

You can use it to determine if Wells Fargo is worth while as an investment in your 401k anymore.

Me personally?

I own 0 shares.

Comment! It's anonymous!

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They are trying to soften the blow - by softballing "we will be cutting the dividend" without saying by exactly how much, tells me that its going to be significant.

This is a s—ers game - its your own fault if you lose all your retirement holding this company.

Loan losses must be pretty big for them to be playing games like this.

Why is it only wells was forced (not asked) to cut dividend and none of their peers were?

Something very rotten here.

Interesting - if you look at last quarters results wholesale actually has a better efficiency ratio than both WIM and consumer. WIM IS .83!!!

@kxx here. Sorry - read the wrong article. Dividend is projected to be cut from 51 cents to 20 cents. My bad. Still significant. And still think this place is a nightmare.

To @fgf: I read it here first! Thank you. 34 cents to .05 cents- that is significant. And OP was on it! I just don’t know why anyone would want to own our stock, honestly. The only reason the price was ever where it was when it was significantly higher priced was because of executives pumping it up to investors and mutual funds with false claims of their success in cross-selling, very aggressive stock buybacks at the all-time highs, and finally: the income from the dividends. I wonder if this news is already built in to the price of the stock? Only time will tell. It has been interesting to watch the mighty Wells Fargo collapse in on itself. I just wish I didn’t have to observe it all from the inside. How many employees own the stock in their 401Ks? We were always advised to sell it as soon as it showed up in our accounts. But you had to watch for it and remember to do it. Too many burned by the WCHV debacle. What a nightmare this place is.

It was noted on Jun 25

https://apnews.com/5f7b81280fd44191e41272719f6a7020

this was posted yesterday.

today at 4:32 pm est wells fargo made a public statement that dividend will be cut and the cut will be announced july 14.

+1 foresight to OP

congradulations to everyone who sold or planning to reduce position.

If you are young I’d probably up your $WFC percentages in your 401k to buy more at a lower price. Obviously if you need that $ anytime soon that would not be advisable. Not investment advice

He says cuts will happen in the next two quarters, definitely by the end of the year. He must be counting on the pandemic being under control by then, but it’s not necessarily looking that way.

It will be interesting to see how he spins it.

https://www.youtube.com/watch?v=hmQhrzMhDMM

In EGS they make 90% less than we do. How do we even compete when they earn less than the US minimum wage?

How can this even be legal?

https://timesofindia.indiatimes.com/city/hyderabad/Wells-Fargo-India-opens-its-second-facility-in-Hyderabad/articleshow/29262609.cms

https://www.mcall.com/business/mc-biz-wells-fargo-job-cuts-20171017-story.html

https://www.firstpost.com/world/why-us-banking-giant-wells-fargo-is-creating-back-office-jobs-in-india-353273.html

https://www.numbeo.com/cost-of-living/compare_cities.jsp?country1=United+States&country2=India&city1=San+Francisco%2C+CA&city2=Hyderabad

Remember, lay offs = stonks go up.

If senior management is going to lay-off 20% or more employees during the pandemic or not, they should all take a big pay cut. Otherwise there are going to be huge protests outside the bank across the country and major political fall out. That is the only way the community will take it.

Holy cow!

I'm sharing this post with everyone on my team.

Earnings I think are 7/14/2020.

This looks like an extreme event.

Thank you kind person for giving us a heads up to protect our 401k!

Thank you for posting something that is actually helpful and informational to all.

Thread regarding Wells Fargo & Co. layoffs

"Our expenses are just way WAY too high"

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