Thread regarding Wells Fargo & Co. layoffs

Wells Fargo’s New Business Strategy: All Hat and No Cattle

Full of pretentious talk and high fees- but no experience, substance or unique investment approach behind it.

I’m, of course, referring to the potential sale of our Asset Management team. But it goes so much deeper than that.

It’s a continuation of an alarming trend within Wells Fargo, if you take the ability to properly advise our clients seriously. We are eliminating our own experienced investment advice professionals, and are now just copying the advice of other firm’s experts.

Gone is our Equity Strategist who had his own time-tested (and highly successful) model forecasting the market. Now we just look at what other firms are saying, such as GSCO and MSCO, and decide who to agree with and then put that out there as our own diluted forecast or opinion.

Gone is the analyst who developed the ever popular DSIP Plan. We now just have people who plug in and pull out stocks according to her original model.

The above are just a few of many examples. There is cost-cutting that eliminates bloat and duplication. And there is cost-cutting that cheapens a brand and makes it irrelevant. We are becoming irrelevant. The word that comes to mind, which I can’t think of a better way to say it is “posers”.

I know many of our Financial Advisors who follow other firms’ research, rather than our own, because we are now just chucking out marginalized Suze Orman -style advice.

I would liken it to Apple News. We are no longer a unique publication with our own experienced journalists, editors, writers and distinct voice. We merely gather and publish the work of others.

Why would wealthy individual or institutional clients want or need to bring their money to Wells Fargo?
The reasons to bring your money here grow fewer every day. Our reputation is tainted and now we are eliminating what could potentially set us apart from other firms. I honestly can’t even think of one sales-pitch I could give a client to convince them to bring their wealth to Wells Fargo. Sad.

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| 2018 views | | 8 replies (last October 24, 2020) | Reply
Post ID: @OP+17zZ9Y8r

8 replies (most recent on top)

It would cost another firm an awful lot of money to buy WIM. It’s not just what they pay WFC for WIM, but what they would have to pay Advisors to limit defections. Anywhere from 100% to 200% of the revenue they generated the previous year, depending on that revenue. And other firms will probably offer more to seize on the opportunity to grab some of the top Advisors. Additionally, the acquiring firm will have to pay their existing Advisors to stay in their chairs as well. The potential pool of buyers would be small do to our size.

This aggressive recruiting environment might change at some point in the future, depending on many different factors, but so far the packages are growing not shrinking.

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Post ID: @1oak+17zZ9Y8r

As I posted on another thread, Wells Fargo is still paying some of the highest recruitment packages to Advisors in the industry. In the several millions of $ to those bringing over the the largest books.

Having said that, Barry Sommers is over WIM now, and he and Charlie might have other ideas.

I would not be surprised at anything from here on out.

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Post ID: @1pzo+17zZ9Y8r

Any thoughts regarding potential sale of WIM being considered now that they consolidated?

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Post ID: @1jpm+17zZ9Y8r

I don’t disagree with the post, but the fact is the juice coming from WFAM, or really all of WIM, isn’t worth the squeeze. WFAM is what, maybe top 20 or 25 in the US? For a bank this size that isn’t good enough, so the decision was either invest heavily to actually compete At a high level, or exit the market.

Guess what we aren’t doing right now, spending. WFAM may be the first to go (lately) but it won’t be the last. Assuming they can find someone that wants to buy that is.

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Post ID: @qcq+17zZ9Y8r

100% true. This is the start of full abort by WF.

The alarms are ringing loudly, the musicians are playing on deck with their life jackets, and the ship will be fully submerged soon.

What abysmal leadership. Total buffoons.

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Post ID: @dli+17zZ9Y8r

The truth hurts. Good post, OP.

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Post ID: @gnq+17zZ9Y8r

I see it from my part of the firm as well. Much does need to be automated to create efficiencies. But efficiency is not ALWAYS what is best for the client.

It seems like we find the money to improve technology when it will save money for the firm or decrease risk to the firm, yet could potentially disadvantage the client.

But if we need technology to create more value for our client, the money isn’t there. No thought in to whether creating value for a client would make us more competitive or bring in new prospects.

Very short term, self serving thinking.

At this point, some of the execs who have made it to the top just want the “I saved the company X number of $” feather in their cap, rather than the long term health of the bank. Or what’s best for the client. The unfortunate truth is that need to keep their families living in the style to which they’ve become accustomed. That is their top priority which will overshadow most decisions. They want to collect the big bucks and then retire or be on their way to another company. I see it play out every day.

PS I love that OP used the term “posers”. Good one.

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Post ID: @zmn+17zZ9Y8r

Great post. And from where I sit in the firm, all true.

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Post ID: @egy+17zZ9Y8r

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