Thread regarding Wells Fargo & Co. layoffs

WFA, and the PB is poorly ran. So many levels of highly paid managers who don't really do much. The wachovia folks ran and run circles around the wf brokerage folks who just did whatever they wanted. The legacy WF folks are all the folks getting in trouble. PCG has TOO much support and a waste of $ for folks who think too highly of themselves. Why the margins are so poor. The PB has changed out so many c-appy leaders yet a few remain. High salaries and too much total comp for folks who don't do much or provide much value. Systems from the 80s and a lack of desire to do anything new and revolutionary is k–ling all these businesses.

OP here responding to @gcy. I will believe you on your WIM information. I can not speak to all of WIM, but I can speak to the Brokerage Arm. Previous to the scandals coming to light in 2016 and continuing to emerge since, the Brokerage Arm on its own always generated a nice profit for Wells, though we are a small % of their total business. But the Bank’s ruined reputation sure does make it difficult to bring in new wealthy customers who read the news. Our experienced FAs have left in droves. And we have unsuccessfully attempted to replace those experienced FAs with salaried employees who are only allowed to give very basic standardized advice.

The whole point of my post is how the bank has and is ruining the brokerage business. I can give another 25 examples just off the top of my head. They want to dumb it down to Walmart-style advice and charge above-premium prices for it. The whole push has been cutting costs (yet bank execs pay themselves lavishly), reducing risk to Wells (thus marginalizing our advice and minimizing our ability to guide our customers individually), raise fees to clients and steal business from the FA’s. In all the meetings I’ve attended through the last 12 years, the goal is always what’s best for Wells and never what’s best for the clients.

There really shouldn’t be any debate here. The end result of all the poor decision-making is reflected in Wells Fargo‘s current reputation, our earnings results, the fines, our stock price, our Asset Cap, employee morale, and our standing with the regulators.

I sincerely hope Charlie can turn it all around for the sake of everyone, employees clients and shareholders, but so far it just looks like more of the same. I haven’t seen a fresh thought yet.

OP here. Responding to @1uil: I agree partially with what you’re saying, though I would have been able to say it without name calling.

We do need to modernize, especially at Wells Fargo. Our fees to customers are too high, and we are getting run over by our competitors because we have not been willing to spend on technology. I, personally, am against Wells and other firms selling the Managed Money model where they charge you a % of your principal annually even if you are not trading. There are benefits to clients, some would say, but part of the reason behind it is a steady flow of income to the Brokerage and to better manage the risk around our advice.

The younger generation has figured out how to do it much of it on their own. Having said that, I am in a position to see the results of those trading for themselves online, some are smart and many blow themselves up.

There are many intelligent successful people out there: doctors, business owners, busy parents who do not have the time or inclination to learn about the market, follow the market daily, do their own research, plan for their retirement, invest after they retire, etc. There is value to an experienced FA who has seen many market cycles and stays on top of the news, the economy and all factors. That type of FA is different than the newer push for firms to bring in “money-gathers” who then just turn it over to Wells to invest through Managed Money. My own FA guided me wisely through the Covid dip in March, took my emotions our of the equation, suggested a couple gold ETFs to balance out the risk of my stocks, reduced my position in some potentially riskier investments given what was happening (energy) and I highly value his many contributions and am willing to pay for it.

• correction...That is no value in the base Commodities you sell

People in brokerage land// newsflash you are not that great and the business will soon go to a Netflix subscription model— its time for you to evolve ,face the music and yeh you may have once got paid 8 percent for a mutual fund and now nothing— guess what that trend will cover your entire business soon... there is is value In the base commodities you sell at 1% where consumers can get better execution, Faster, cheaper and via tech that is really good— you are like dinosaurs and refuse to see the incoming meteor.. and we all
Know that happened at that point—-so quit your whining, self-aggrandizing , victimhood and evolve

OP here. I am not WBS, am on the brokerage side and work with all the FAs: PCG, WBS ,FCCP The merging of PCG and WBS was to reduce redundancies, not PCG “taking over”. No worshipping of anyone here, but I have enough common sense to know not to strangle the Golden Goose. Take care of the FAs who have stayed here, so we don’t have to pay $2M -$4 upfront for new FAs to come over. Simple math really, the FAs are the ones bringing in the clients and the money. The rest of us are here to provide top- notch service and we wouldn’t have jobs without them.

OP sounds like WBS where Managers must be worshipped. That’s why PCG took over to show how FAs should be supported.

You do realize WIM is historicalMy one of our worst performing division and miles behind our peers in both revenue and profitability

Sounds like chainsaw should sell WFA to a company that to actually be relevant.

I know a branch that just laid of 3 CA’s. Also cuts to compliance and product group if they didn’t happen yet should be a lot more next round.

Private bank/Abbot Downing is in the same or worse boat. All resources stripped and there weren’t a whole lot there to begin with. High net worth, 8-9+ figure clients...huge revenue producers...being given an experience that is low level commercial banking at best. Everything now being driven solely by management’s very misunderstood concept of “risk” which in reality is just creating more risk. Technology/online experience circa late nineties. The high performing teams have all fled or are fleeing to other banks or trust companies. WFC simply can’t and won’t ever compete in this space and has been left woefully behind by every competitor.