Is WFA somewhat insulated from the layoffs since it is a broker/dealer and not really in the commercial banking industry where much of the scandal originated?
10 replies (most recent on top)
No. make more than you cost. You're safe then. Pretty simple.
True, most “Team Members” have long desired that WFA be spun off from the tumor. Many long employed WFA employees NEVER subscribed to or believed in the failed Universal Bank Model theory. We believed in “Trusted Advice, Excellence First” and that we were treat our clients as we wished to be treated. And for Home Office employees, we understand our first priority is to service the FC’s, a.k.a. F.A.’s because they kept our lights on. And that the “know your customer rule” was paramount.
Alas, another Judas sold us for $30 pieces of silver, ($30 mil and healthcare for life) and destroyed what a family built over several generations based upon the golden rule.
Most people in WFA would prefer to be spun-off from the Wells Fargo Bank brand.for obvious reasons. Banks and Brokerages aren’t a good mix for anyone, especially clients.
Robo-advisors have their place, but an excellent FA can serve you in ways an algo cannot. Same as getting your eyes operated on at a discount mass provider vs an excellent experienced surgeon not under pressure to cut costs. Depends on your priorities. If your FA has you set up for fee-based managed money, tho, than might as well just sign up for a robo-advisor. The bank pushes WFA to sell the fee based model in order to bring in a regular revenue stream for the bank. Wells Fargo is all about reducing risk (to Wells Fargo), standardizing advice, cutting costs, raising fees, and regular revenue streams. Wells Fargo isn’t looking out for the client, but your FA will if you have a good one.
Someone below, here, mentions analysts not working and running around all day. If you are referring to Research analysts, they are on the bank side now, not WFA, under Wells Fargo Investment Institute. WFII is another cost-saving risk -averse operation ruined by the bank. Take one of those analysts out for drinks and, after a few, ask them what they think of WFII.
Having said all that, WFA does need some cleaning out. We were much better run before being forced in to the bank model. Many of us would appreciate being set free from Wells Fargo, whether it be with a package are as part of a spin-off.
No. They have been very clear that cuts are across the entire firm not just the bank. Spans & layer cuts are happening as we speak in brokerage at all levels.
The sales practices scandal was rooted in the Consumer Bank, not the Commercial Bank.
The Consumer and Commercial Bank are typically 5 to 6 times more profitable than WIM.
Competitors started the process of replacing FAs with AI and bots years ago.
Believe whatever you want, but I continue to be amazed that people will pay for financial advice from people who don’t know anything about their employer.
I think there are plenty of analysts that aren't needed. I would run around all day working while they're socializing, playing games, surfing the internet and taking long lunch hours. Hmph.
WFA is heavy with fat. Lots of admins that aren't needed and layers of managers that could be cut. If I was part of WFA, I would only feel slightly safer than a teller.
WIM has plenty of problems and there will be layoffs. Also, I wouldn’t say WIM is scandal free, just not as in the news as consumer.
Depends on the job. Last year they started consolidating divisions (WBS and PCG) and lots of redundancies were eliminated. I imagine this will continue.
As a Financial Advisor, you're probably ok since you k–l what you eat.
no one is insulated or safe...