Thread regarding Wells Fargo & Co. layoffs

They are not selling any business IMO. We are the most simple bank vs. our money center peers. Sure, the bank sold off commercial mortgage banking business but do not expect WF to sell CIB, wealth, or any consumer business. We are going down the path of mirroring JPM and BAC in terms of org structure. Unfortunately the 800 pound gorilla in the room- ASSET CAP- in a major known unknown. Nobody knows when it will go away and with more far left leaning politicians in power, I do not expect it to go away anytime soon. To counter those expectations, the bank needs to shrink its expense base. It is simple as that.

Charlie Scharf built a career in cost cutting. He has not proven himself in anything else. He is skilled in right sizing the new WF. I do not see WF going back to 55-60 in my lifetime. Too much bad reputation. WF would be better off buying another bank and taking its name.

You said it perfectly bubba. Truly laughable that Nate Hermanator takes a victory lap for completing a “major milestone “ by doing their MTL and shuffling thousands around with no direction to what they’ll be doing and what the actual RACi is, he goes on to say the LOBs now have the people to do the risk work. Really? LOL! None that I know do yet they’re faced with control and issue problems with no risk expertise. And the consistent business aligned model to “think like the business “. Hahahahahaha. Right. They are all different It’s so pathetic, this is probably more chaotic than when that disgraced Laughlin moved the whole GRO teams to corporate risk and installed the beleaguered Kevin Oden.

I think they are going to sell off the Investment Banking business.

Well said!

I, too, see nothing that gives any confidence they are moving in the right direction towards getting the asset cap lifted. They had no guidance whatsoever on the earnings call. That is disconcerting anyway you look at it.

I think there is a chance there is some kind of a surprise announcement in the works. Selling a major division or something. All the cloak and dagger secrecy. And it is highly unusual that a CEO and CFO would put off questions about cost cutting and the asset cap until the next quarter. Those are the 2 most important factors for the future of the bank. No answers. They both know it is utterly unacceptable to not be able to give any information on those two fronts. What is going to change, really, in 3 months? The only other answer is that they don’t have any clue at all how to fix this monstrous mess, and they can’t come out and say it. So they did the only thing they could do, which was to deflect.

I know I could be wrong, but I have been down this road before. Didn’t just roll off the peach truck. Something is not adding up.

Amen! Power to you and all of us as the water level rises.