There were rumors just before COVID hot that Goldman Sachs will merge with WF. In a way that make sense since WF has such a bad image right now and being taken over by G.S will solve most of the issues. Also, WF doesn’t have the best technology and Securities business and being taken over by GS will also help with those aspects. GS market value is lower then WF as of now so don’t think they can buy WF but a merge deal where a WF stock holder get 1.3 shares of GS share can work. Also, GS would install their own Managment in WF organization and this would be a true transformation. What do you guys think? Is this something realistic that could happen by next year if WF value keeps on going down due to the Asset Cap?
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Not going to happen. WFC is cheap now but riddled with problems. By the time Charlie fixes it it will be too expensive. GS does not have a history of big deals. They acquire small shops for the intellectual property and bring in their home grown talent to manage it. WFC is a 20th century enterprise doing business in the 21st century. Relative to peers GS is a 22nd century enterprise operating in the 21century. Those who have had the chance to experience GS people processes and systems up close understand what I mean and why GS is GS
Goldman Sachs taking over Wells Fargo is like Bayer taking over Monsanto. You wonder which one is worse.
I am employed by wells... we s—... everything is soo divested and decentralized. Some change has happened. What would Charlie do?
WF should sell many businesses and simplify the operation so it can survive. The company is clearly unmanageable in its current size and scale as a simple google search about lawsuits and illegal actions will show. The current path is leading to self destruction.
Would love it. WF never understood the brokerage business.
WF needs to sell its business units / portfolios that don’t provide sufficient returns. I am sure there are quite a few of them out there with minuscule or negative return on assets. This will be a simple way to address the headcount issue as well. Of course... they may struggle finding a buyer :-)
I personally think that if GS merge doesn’t happen, WF will need to look into acquiring a quality Investment company since theirs is not at the highest level right now. Some one like Charles Schwabb or a new kid on the block RobinHood.
I think the Asset Cap is a blessing and a curse at the same time. Since Wells can’t lend right now over 1.95 trillion, they will be in a better shape then the other big banks. There will be a lot of Loan defaults because of the Unneployment at an all time high in the last 30 years. Since Wells is now allowed to lend, their loan losses in the next few years will not be as bad as let’s say BAC and JPM and Citi.
No way this would happen anytime in the near future if at all. Regulators wouldn't allow it. And why would GS want such a dumpster fire of a company? Wells will eventually get sorted (or Charlie will get booted in a few years). If anything, start divesting things (like wells did with insurance and HBS)
Never going to happen. Instead Morgan Stanley will buy Wells Fargo.
This is definitely going to happen...it's the only way both can maximize their value in this environment and for WFC to achieve their needed efficiency gains...in the not so long-term this would very good for shareholders (although there would be short-term hurt say maybe 1-2 years). The regulatory response would depend on how the WH and Senate changes look in Nov.
really hope they do
Sorry but that's just absurd And Would absolutely never happen Regulators would slap your mama Just for asking
I don’t think the regulators would allow this even larger “too big to fail” financial institution to occur. But you have pointed out many positives that could come from an acquisition/merger.
No matter what punishment, restrictions, comeuppance, solutions are put forth: it is the employees and shareholders who ultimately pay the price while the top executives walk away with their pot of cash. They are laughing all the way to the bank, deceiving us all time and time again. And there is no shame on their part- they are proud of themselves for being the fast-talking con artists that they are. It is happening right now, today, right under our noses. I don’t have a solution unfortunately.
I would be happy to see the company go down in a ball of flames, honestly, if there was a way for the average employee to not get burned.
I think the merge with Goldman will be the only way WF survives this.
It would be a 60/40 merge since WF value is around 30% more then Goldman as of now. So technically, Wells would control the majority of the combined Entity. But in reality, Goldman will take over the Managment and drive The transformation that would benefit both companies imo
“Wells Sachs” would be better as we’re already almost there “Wells S—s”
I think the previous idea is Wells would buy Goldman, but Wells can't because of the asset cap.
Seems far fetched to me, given WF's size. Regulators would go crazy, with concerns about "too big to fail" wouldn't they? Can imagine more divestment of business units to other FS companies, though.
Re Name it to ‘Goldman Wells’ after the merge