So at this point, it's obvious layoffs are coming fast. But what is Chuckie's vision on being a competitive bank?
He seems to always repeat the same lines of "asset cap and regulators yada yada" and "we lag competitors in efficiency ratio." We already knew that. What's the future goal state of Wells Fargo oh highly compensated one?
1iou - yeah there’s only one way to interpret that. Don’t you just wish they would be more transparent and go all Howard Cossell in the communication and tell it like it is? “We s— at efficiency, our competitors run circles around us and we need to, and will, layoff a whole bunch of you regardless of Covid. Best of luck to all. You will hear from us within 60 days of your fate”
See, there's your problem.
Everyone expects a corporation to "grow", you can't just be a good company and turn a profit, you must grow.
That's the source of about 80% of America's problems right now.
Companies do not get rewarded for being good companies and keeping people employed, which leads to tax revenue for cities and states and stable homes for families.
Companies get rewarded in the tax code for sending jobs overseas and on Wall Street for cutting headcount.
Scharf stated “while the negative impact of the pandemic is unprecedented and many of our business drivers were negatively impacted, our franchise should perform better, and we will make changes to improve our performance regardless of the operating environment”.
How did y’all interpret this?
I interpreted it as they are going to proceed with layoffs regardless of the worsening pandemic and economic outlook. This means tens of thousands of us will lose our income and health insurance at a time when we need it the most, and won’t be able to afford COBRA premiums to stay on our existing plans.
the bank is asset capped.
it means they cannot grow the book of assets.
the ONLY lever they have is cut cut cut
but then, pandemic....thats put a wrench in the chainsaw motion.
its politically sensitive to lay off tens of thousands of staff in the middle of a pandemic. And they know it.
Wells operates in usa community - they would be crucified in congress and likely there would be an even BIGGER push th break up the bank.
Chukkie knows this.
And Cukkies money waggon is tied tightly to this albatross.
So now he has to wait for the right minute to execute his one and only tool to make himself rich.
But as soon as the eye of the storm oasses and he has cover, you betcha hes gonna pull that pin....
There no doubt in my mind they already know the first 20000 employees they gonna let go rite now....they just waiting for proper optics to execute
Making it a competitive bank isn't why they hired him. There's an archetypal CEO who is brought in to fire people and make unpopular changes. They make a lot of money for doing it, but are forced to leave the company within a year or two. Much like Ellen Pao at Reddit.
Yes, he is highly repetitive and says the same ol lines at every meeting .
If you are over 40, this is why you lawyer up...
https://www.theregister.com/2020/04/15/ibm_age_discrimination_lawsuit/