Thread regarding Wells Fargo & Co. layoffs

People, you have a disconnect.

The stock isn’t magic ca$h worth whatever the magic YoYo determines today. The magic YoYo doesn’t reliably bounce back up like a super ball. Owning the stock means that you are an owner and implies that you really like the your management team and think that they are doing a great job. Nothing ahead but blue skies from now on.

Of all of the 500 companies in the S&P 500, Wells stands out to you as a great management team and Wells stock certainly must do better than the S&P. Warren Buffet, a legendary genius at allocating capital gave up on Wells and is now proven to be a fool.

Millennials grew up in an unprecedented level of affluence and their necessities were our luxuries. This is going to be a tough lesson.

Wells stock price will be cut in half in 2021. It represents a sham reality that never was. I hate to see so many good people riding it down. Consider that each and every one of us understands that we are managed far more poorly than the average S&P 500 company. What would be the reason to hold onto toxic assets?

@4ddc
Ok you arrogant stereotypical boomer, I'm a millennial and knew the answer, but not all esops are created equal. Some esops are set up so the employees DON'T lose money. Whatever the lowest price was when given or purchased, is the lowest that share will go. You think you know everything when you obviously don't.

It is insane how insulting a lot of you have been to the op. I am not really young and not too old, but still didn't know the answer to the question. I never had a position where I received stock in the company. I only invested on my own as I saw fit. Not everyone at WF is a banker or desires to be. Get off your arrogant high horses.

News Alert to millennial child: BACK AWAY From the dumb phone and spend 15 minutes googling stock options and strike price and find the email that tells you to log in to your account. I understand that your mother attended and helped in your job interview, but it is time for you to put the tech toy down on your desk, put on your big boy pants and go to your HR option site, understand the stock price and the strike price.

I really hate to tell you that this is such simple stuff, but it really is such simple stuff. It is important simple stuff though. At your crossroads you ought to seriously consider putting a half hour more into it than you spend on planning your SF evening bar crawl tonight.

Some are younger folks just learning about their compenstation.

There's a pandemic and some folks are worried about their jobs, so maybe be kind and seek to educate before you are harsh on anyone.

Or as I as a great internet prophet say, Troll Not Lest Ye Be Trolled.

9 hours ago by Anonymous | 1 reaction (+1/-0)
Post ID: @3zpo+17NG3Oio

News Alert - not everyone at the bank is a banker.

Some are younger folks just learning about their compenstation.

There's a pandemic and some folks are worried about their jobs, so maybe be kind and seek to educate before you are harsh on anyone.

Or as I as a great internet prophet say, Troll Not Lest Ye Be Trolled.

Don’t downvote bankers in financial services needing to understand the basics of stock options and a strike price. Instead of rejecting it go and educate yourselves for 15 minutes. Ya gotta show some basic interest in financial services if you work in the industry. The same folks who bash our leadership don’t seem to realize their own basic disengagement and non-interest in their work.

We have much bigger problems than our leadership. This is actually a good example of the mentality that allowed so many lemmings to happily and unquestionably open millions of fake accounts.

@3xwc, RSU's are not options with a stock price

Folks, we are all bankers in financial services. Do we really not understand that when our shares drop below our strike price, our options are worthless? Our options are worthless and becoming more worthless.

you own shares (some partial) of WF stock in your 401k and your ESOP. Of course stock prices go up and down. Look at your portfolio this way, if you have 100 shares of WFC stock and the price is $50 dollars your value is $5,000. If the stock price increases to $55, your value for the same amount of shares is now $5,500 and if the stock price decreases to $20 your shares are worth $1,000. Now it should be said that until you actually sell the shares, you own the stated stock amounts (ie 100 shares) so the value that increases/decreases is not realized. The best thing at this point is to hold the shares and wait for the increase. We're very very low right now and it would be silly to sell unless you really think the bank will fail, which I do not. So while the value of WFC is tanking that portion of my portfolio, I do believe it will go back up (could be a few years) and will hold the position but clearly everyone can make their own investment decisions.

Stock price today on a relative basis is similar to the crash price of the financial crisis. I’d consider buying, within your risk tolerance now in these low $20 and if it goes in the teens, back up the truck. Wfc is not going anywhere. Just like bruised and smacked around other bank stocks in 2008/9 that were depressed for years (BAC, JPM) , WFC will recover. This stock will be double plus in 2 years. The franchise earnings power is too great for that not to be the case. By that time, expenses will be under control, getting efficiency ratio back to ~55. Net profit and ROE/A will sore like pre 2016.

WFC isn’t going to fail. Right now the stock is on sale. Buy up and enjoy the ride when things start improving.

Is this a real question? How are you employed here?

I agree, no1 should hold more then 25 percent of total retirement balance in a company stock. However, for all the patient Investors, I believe that in 3 to 4 years the stock will at least double from where its trading today. Yes, the Asset Cap must be lifted, Divided Re instated, buy back share program re instated, efficiency ratio in line wi other big banks, interest rates to rise. If all that happens then WF will reward all the patient investors imo.

Terrible answers here. Look, WF is a publicly traded stock, and like any other stock it is going to go up and it is going to go down.

Does it make sense to hold WFC stock as some (smaller) portion of all your investments? Maybe –but not more than 10% of overall portfolio value would be conventional wisdom. And that's assuming you have some long-term Confidence (capital C as in "Charlie") and Patience.

Yeah, yeah, the stock has been in the tank lately – but that can just means it's "on sale" – especially for those believe it can bounce back. Who knows – but holding a little WFC stock is still better odds than buying a lottery ticket.

Well, learn something new every day. Next thing you guys are gonna tell me is that my shares in ESPP also don’t retain their original value?

back during the great recession when our stock was in single digits I pumped everything into ESOP figuring it would go up in the future. I've since moved it out and reallocated but on considering doing it again if we mover into the teens.

Yes, next?

Like the previous poster, never keep your retirement funds in your employer's stock (ESOP). If the company goes down you not only risk losing your job but your retirement funds as well.

The index funds are the only decent funds WF 401k offers.

No Wells Fargo team member should have any of their retirement money in the WF ESOP fund. Given the mediocre options, you should be diversified in one of the index funds or the target date funds if you have no idea on picking investments.

I have been getting deferred comp for the last several years and I have been mindful to sell it as it fully vests. I use the proceeds and invest in an S&P 500 Index fund.

WFC stock is toast and with the bad treatment to those team members that remain after the layoffs, I would not be surprised to see top talent leave for better/greener pastures. Other banks have been calling. They are still looking for top performing talent and they are willing to pay and treat you right. Unfortunately, WFC does not. And it is the fault of the CEO, who has never opened an account or originated a loan in his life. He cannot relate to what we do because he does not know what we do.

If you have to ask, you probably shouldn't be working for a bank.

Yes. I always sell my matching contributions ASAP and invest in other 401k options.

when wells contributes to your esop it is pretty much the same as giving you stock. you are getting that stock at the value it is the day of receipt, and you get whatever it is worth on the day you sell it or transfer it. if it goes up it is worth more if goes down it is worth less. question like this really make me start to question the quality of the wf workforce.

That’s like asking “if I’m on a boat and it starts sinking, am I going to get wet”

No idea. I want to know as well.