Does anyone think the CEO can actually fix the company, get out from underneath the consent orders and get on a path to grow? Or is this bank too big and too dysfunctional to be turned around at this point? Anyone can cut jobs, but does this bank have a future, or is the Fed going to have to mandate that it get sold off in chunks, because it is too big , technologically backward and a hopeless case.
12 replies (most recent on top)
This is a misleading question.
Is Wells still Too Big to Fail?
Yes.
So will they fail?
No.
If you look back you'll notice that all the big banks are organized crime rings and they're all still around.
Vote better if you want it to change.
The most recent feedback regarding Charlie Scharf is on point. I suppose PR/ publicists can make almost anyone sound stellar...no different than govt elected. If people do their research...he was brought in to BNYM with high hopes and in his 2yrs his results were lackluster. All he did was disrupt with layoffs at a macro level and the institution never recovered, and there he went on to his next high earning role elsewhere. They clearly did a very good job to ensure true dirt was not reported...the write ups were very vague and definitely nothing noting his fabulous accomplishments. The media would have capitalized if there had been something worthy to publish.
Folks,
Charlie is a one trick pony on his own. On is own meaning outside the JP Morgan Chase umbrella.
He knows how to cut costs, at a macro level only, through staff reductions and moving labor to cheaper geographic locations.
Charlie has no idea how to execute meaningful change at lower levels in an organization because he's never had to execute at those lower levels.
He lead a charmed life under Jamie Dimon and never learned how to execute.
Having experienced Charlie at JPM and BNYM his personality can be summarized as Charlie is a hammer so every challenge looks like a nail.
Wells is in a bad way and is going to continue to shrink.
Charlie will continue macro level cost cutting without regard to lower level inefficiencies and major gaps this type of management creates because he's been able to outrun his past mistakes.
Expect additional layoffs in the future and jobs moving to lower cost geographic locations.
Charlie + his new team fixing WFC minus the pandemic= maybe.
Charlie + his new team team fixing Wells + the pandemic = no way.
The pandemic is the death shot to WFC. Companies with modern technology who were already on top of their game are going to have trouble negotiating their way through the rapid changes brought on by Covid 19. WFC has to dig themselves out of a deep dark hole with their cave man tools before they can even begin to be nimble enough to navigate the new world. I think the odds are against us.
How much time do you want?
It’s been six years since the LA Times broke the scandal. If that isn’t enough time, then the company is too big, plain and simple.
For the regulators, the bank has already run down the clock.
AYKM? Nothing has changed? Really? Do you not notice the stream of poor leaders who continue to exit to "pursue other opportunities."
Changing this place takes time.
Charlie Scharf will fix WF. That is if fixing it means turning it into the Bank of Mumbai to cut costs. Within a year you won't be able to pronounce half the names in your contact list.
Wells Fargo is how my baby boomer parents Did banking and investing, because there was no technology in place and they were comfortable with what they grew up around. They are gone now. I haven’t ever gone to a bank branch and never will. I Do all my banking and investing by myself and online and I am high net worth. I have zero interest in anyone helping me. With the rise of the internet, I can do my own research and make my own decisions. I don’t need a financial advisor, a bank teller, A mortgage broker, a license banker Or a private wealth manager. Waste of time and money. The younger generation isn’t interested in doing brick and mortar shopping either. Wells Fargo and all the big bank business models Are dying out. The big banks seem to competing with each other rather than lifting their head out of the sand and realizing the client of yesteryear is gone- literally gone.Everything is going online and digital, To appeal to the younger generation Who want to do business via online apps. Wells Fargo is not nimble enough to adapt to what the next generation expects and will get sold off in pieces- brick by brick. Yes, Wells Fargo is the Sears, The Blockbuster, the Woolworths of yesteryear. It is becoming more irrelevant everyday. It is happening before our ways. Even paper money will go away and will get replaced with electronic money.
Yes. Too big and too screwed up to fix and too far gone. I was going to post a thought I had earlier, after I read about the dividend cut, but for some reason I didn’t want to be Negator. But here it is: My first thought was: are we the next Blockbuster? The next Kodak? Giants who once dominated an industry but who failed to adapt to a new marketplace and new consumer attitudes. We will NEVER catch up on technology, much less move forward. There are ongoing lists of literally thousands of technology problems plaguing us for years which we can’t get anything done on. They just keep shuffling and reshuffling the deck. You know it if you’ve ever worked on a project. Blockbuster failed because the only way they could make money was by charging their customers all those late fees. Taking advantage of and ripping off their customers: THAT IS WFC.
Maybe we are the next Enron or Worldcom? Companies where the executives committed fraud and sought to delay and fool investors and regulators: Executives cashed in, and employees and investors walked away with nothing. I’m sorry, but THAT IS WFC.
WFC is a case of Too Little, Too Late. Public perception hasn’t changed since 2016, as deserved. Current plan looks to be cutting down to the bone in preparation for sell off.
The Cleveland browns have a better chance winning the Super Bowl than Wells coming back to prominence. At the rate they are going, it needs to be demolish and start from scratch.
In about 3 months, the CEO will celebrate his one year anniversary. Has anything really changed?
Stumpf couldn’t fix it, nor Sloan, nor Parker. 4 CEOs later it’s a fair question, Scharf is the only outsider, but it does seem the bank is beyond repair.