Thread regarding Wells Fargo & Co. layoffs

I have worked in other industries and could not believe the red tape, unnecessarily complex processes, and redundancy upon redundancy. Bloated in # of people, bloated processes, bloated # of apps with near identical purposes. It is a corp of acquisitions that never ingested any of them

Wells is laying people off and at the same time, hiring in that same business unit.

It may not be doomed but one can see the rocky shoals in the storm.

The shadow that was cast on WF, but emphatically NOT on banking in general has not passed. We only delude ourselves by thinking this way. We aren’t optimizing, we are a problem child in the banking sector and are struggling to show a reason for existence. We are going to be disassembled into manageable, less toxic partitions which will be sold.

@kuk+17V2k0zm being bloated with cash can also get you in trouble. There's a fiduciary responsibility to the stakeholders to properly invest those funds, either in upgrading systems or generating more income through investments. The former is tougher because of the asset cap, but the former is not.

Numbers don’t tell the whole story. The Wells culture of corruption is not changing anytime soon, nor is their 1970s - early 90s technology. Schart can cut expenses to his heart’s content but with archaic systems you need the people. There is payoff until we’ll after the investments are made.

Only way out of the corruption, the high expenses and the mismanagement is to carve out businesses to sell to Fintechs.

I agree with that WF isn’t going anywhere but does need to find ways to become more efficient. I read these forums to provide me indications where WF may choose to optimize value. Clearly laying off is one way, closing branches being another.

The shadow that was casted on WF and banking in general has passed so we can’t look there as reasons why we’re optimizing. I think WF is a bit bloated and needs to focus on executing a few things well vs many things poorly. I feel WF was in the latter state and here we are reorganizing. It’s a good thing for WF of course but bad for those impacted.

@OP+17V2k0zm, because most of the posts here are just that. Asinine. I don't pretend the bank isn't with problems. Do I want it to fail while I'm still employed here? NO. Who wishes for that except some asinine individual (s).
Those posts help no one and doesn't do anyone any good.

Agree with the OP. Wells is not doing great but they aren’t in any critical danger of going under or being sold

“The bottom line is that Wells Fargo's stock has been beaten down for a reason, but at the end of the day, this is an institution with a long track record of responsible lending, and it is still quite profitable. And since it's essentially a pure savings and loan, unlike the rest of the big banks, it stands to benefit more than most when the economy returns to normalcy.“

From

https://www.google.com/amp/s/www.fool.com/amp/investing/2020/11/13/is-today-the-right-time-to-buy-wells-fargo/

Post ID: @mrz+17V2k0zm

Your posts are not doing Wells Fargo any favors. Quite the opposite. Anyone who is trying to persuade others that we are a successful and well-run organization should remain professional at all times.

Management can explain away the negative commentary as employees objecting to the current environment.

But what does it say when our advocates are using words such as “asinine” “stupidity” “dumb” “stupid” “dumb–ses”? If your true intention is to defend the integrity of the bank, you need to learn to communicate with integrity.

@ffc

Wachovia had toxic assets on its balance sheet in a time when liquidity dried up overnight. The run on the bank (people withdrawing their money) was the final nail in the coffin that put the doomed Wachovia out of its misery.

This is apples and oranges.

Wells Fargo is bloated with cash. The most toxic thing about wells is how incredibly inefficient it is. Which is a simple solution.

I am not in Charlie’s camp. But I also disagree with everyone that “the sky is falling”

Oh and if you come here to decide if you should be worried or not...it’s not the best decision you’ve made in your career

Anyone ever hear the saying “The lady doth protest too much.”

It is used when protests are too excessive to be believed. It leads me to think the opposite must be true. This sudden flurry of Charlie supporters is concerning because it makes me think they are trying to distract us from some bomb-shell negative news on the horizon.

Bob Steele publicly protested about all the good things happening at Wachovia. And then the federal regulators put it up for sale weeks later.

I wasn’t even worried up until now. Thanks, guys. Good job.

Revenue dropping, expenses rising is an argument that Wells is here to stay?

@OP - you do realize deposits are liabilities, not assets, right? WF increased its liabilities while seeing substantial drop in assets (loans).

Every time, it's some asinine person saying the bank is going to be sold and everyone is hoping it does.
The stupidity is they are still here. One dumb poster started a thread that it would be sold and then comes back with a stupid comment that he will still be here after the CEO and the younger ones. Ok. You want the company to fail but yet you plan on going no where.
Says a lot about the dumb–ses who post here. Full of fluff.

Op here, or = to in the original post

Expenses of $15.2 billion is crazy high.

As much as I hate to say it, Scharf has to focus on drastically reducing expenses