Thread regarding Wells Fargo & Co. layoffs

Wells Fargo has moved big into FX swap market

https://www.risk.net/investing/markets/7845011/inside-wells-fargos-bid-to-take-on-big-fx-players

Why?

According to Zoltan: "FX swaps are off balance sheet, so they won’t interfere with Wells Fargo’s asset growth ban if the ban is still in place around year-end, and Wells Fargo
doesn’t have G-SIB constraints like others do."

But like any line of business, there isn't anything this bank has touched that it hasn't fk-ed up: https://www.wsj.com/articles/u-s-investigating-foreign-exchange-trading-at-wells-fargo-1509118628

Most GSIB banks are retreating from foreign exchange business because of KYC, AML, currency risk and foreign market exposures....but not Wells Fargo.

Smells like a desperate move for income....

  • or maybe we are re-entering the foreign money laundering business again?

https://www.acfcs.org/wells-fargo-to-pay-3-billion-to-doj-sec-to-resolve-criminal-civil-charges-tied-to-fake-accounts-scandal/

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| 1085 views | | 3 replies (last July 20, 2021) | Reply
Post ID: @OP+1bVcwTVO

3 replies (most recent on top)

Back in the Wachovia days they used to have very little foreign business. That changed in mid-2000s after First Union bought Wachovia (yes, they did but kept the Wach name for PR purposes). Not sure how much WF had prior to the WF/Wach merger as I'm legacy Wachovia. But, WF took on all of the Wachovia business and as many have stated prior, the Wachovia way of things. It doesn't surprise me at all this business has grown significantly as it was the direction Wachovia was already going. Heck, I remember when we contracted with BONY to process certain FX transactions. Not anymore. There's an entire team in WFA for foreign (trading, commissions, stock record, derivatives and more). Most of those folks are in St. Louis as they did their layoffs in June to consolidate to MO, MN and IA.

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Post ID: @obw+1bVcwTVO

It just looks and sounds shady. That’s so Wells Fargo.🤦🏻‍♂️

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Post ID: @epi+1bVcwTVO

We should be desperate for income, all of us. Presuming we want jobs. Lackadaisically looking for income in the baking sector won't work.

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Post ID: @abf+1bVcwTVO

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