Thread regarding Wells Fargo & Co. layoffs

WFA - Core Business ? Why? Sell It!

WFA is supposedly a core business. But why? It is the least profitable division. It has the highest expense ratio. It lags all competition in every growth metric. Fixing it isn’t possible. It’s target market are those that dislike the company the most! Endowments are sensitive to reputation issues. Those who are charitably inclined care about reputations. Would you choose a bank with a history of sales scandals as a corporate trustee for a minor or loved one that can’t lookout for themself? Who would brag at a co-----l party about being with Wells over Goldman or a top company?

Retail clients don’t brag about banking relationships, they are too entrenched in the rat race. Commercial banking isn’t as emotional as wealth management. Therefore those divisions are less impacted by scandals.

Sell Wealth/WFA. Let that division grow without the reputation issues of Wells Fargo. It isn’t growing now anyway and won’t in the future.

Keep the businesses not impacted by the sales scandals. Run them well and let them grow.

Time to separate WFA/Wealth from the thing that is holding it back Wells Fargo.

The Bank would win with improved metrics and efficiency ratios. WFA would win because it could finally grow.

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| 1478 views | | 11 replies (last April 1, 2022) | Reply
Post ID: @OP+1g0aLXCJ

11 replies (most recent on top)

@wvm+1g0aLXCJ Because there is plenty of room for growth and CIB is the only business even close to hitting their efficiency numbers, often in spite of the bank.

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Post ID: @2sam+1g0aLXCJ

All the moves they are making appear to be setting it up for either a sale or a spin-off. I give it less than 18 months.

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Post ID: @2ukw+1g0aLXCJ

WFA is a complete disaster. They are losing all the big advisors and are buying junk for huge money. Ship is sinking

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Post ID: @1ikg+1g0aLXCJ

Being from AG Edwards, I wish Bagby was canned before 2007 for his gambling issues.

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Post ID: @1fti+1g0aLXCJ

WFC should make a deal with Benjamin F Edwards and spin off WFA renamed as AG Edwards.

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Post ID: @1ann+1g0aLXCJ

What about Securities? Why would they be considered a core business? It has nothing to do with core banking.

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Post ID: @wvm+1g0aLXCJ

Being from WFA, I wish it was spun off about five years ago. The bank continues to ruin this business

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Post ID: @dcl+1g0aLXCJ

I could tell you many situations where WFA acted unethically with clients and advisors. They got away with it, but I'm certain they are one angry advisor away from a major class action lawsuit. I've been a proponent of getting rid of the parent corp for years...unfortunately, the same managers and revenue streams are tied to each other.

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Post ID: @ans+1g0aLXCJ

Did you just try to compare WFA to Goldman Sachs?

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Post ID: @dmd+1g0aLXCJ

Yup. Management acting in self interest is the reason it is still around. This is the very reason it needs to be closed/sold. As long as the primary reason to stay open is management’s self interest (and not because the model works and business is growing), the next scandal is right around the corner. Time bo-b waiting to happen. They need to divest while they still can.

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Post ID: @clk+1g0aLXCJ

Decent take. The captive advisor business is dying off and moving towards independence. As for why it's still around, it's the classic sales manager comp model, complete with bonuses large enough for senior managers to act in self preservation.

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Post ID: @dmt+1g0aLXCJ

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