Thread regarding Wells Fargo & Co. layoffs

Wells Fargo will not get out from under the Asset Cap whilst Charles is in Charge

I can practically guarantee it.

Why?

Because Charles is no different than his predecessors. He is similarly pompous. He is similarly self-interested and entitled. He is similarly showing no interest in doing what’s right for our customers. Financial incentives still exist at the bank which present conflicts of interest and encourage employees and leaders to take legal risks. He continues to punish employees for the crimes of the C-Suite. He is spending Billions of Dollars to manipulate the stock price for his personal benefit. Because his aggressive cost-cutting and offshoring policies are taking us further away from improved oversight and increasing opportunities for internal corruption, rather than moving us in the proper direction.

I don’t see Charlie leading with integrity, respect, fairness, transparency and honesty.
And obviously, neither do the Feds.

by Anonymous
| 1258 views | | 8 replies (last May 28, 2023) | Reply
Post ID: @OP+1mNWcIZ8
Comment! It's anonymous!

8 replies (most recent on top)

Posters on this thread ignorant of basic facts. of how regulatory actions work.

Fed requires a plan which they (Fed) must approve. And the Fed isn't just a rubber stamp on the plan. The plan has to show how WF will get to parity with what is routine, standard risk management practices in the industry.

If there wasn't a plan, you'd be hearing about work effort to get to a plan, and further sanctions from regulators for not having an accepted plan.

by Anonymous
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Post ID: @3snb+1mNWcIZ8

Post ID: @1vxo+1mNWcIZ8

It is very sweet (and naive) of you to defend the plan to remove the asset cap. However I’m finding it difficult to take seriously the word of an adult in the financial industry who uses the word “super” as an adverb, and uses “really, really” in a sentence to describe how difficult the process is.

by Anonymous
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Post ID: @2rpz+1mNWcIZ8

Of course we have a plan. It might not be a good plan. Chuckles can not even execute RTO, how is he supposed to execute this?

by Anonymous
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Post ID: @2xap+1mNWcIZ8

Nice post what banks do with their capital. What does WF do? Stock buybacks at $60 and $2m salary increase for Chuckles.

by Anonymous
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Post ID: @1dmh+1mNWcIZ8

Super uninformed OP.

The company has clear direction towards the removal of the asset cap. The plan is being worked. Newsflash, it is really, really hard to fix the myriad of problems identified by the regulators. It's like complaining about a mechanic being too slow when they can't do an engine swap in 30 minutes or griping about a bridge taking more than a month to construct.

I've never understood why people hold the belief that all of the issues can get fixed within a few years. If you had any insight at all into the number of issues and severity of issues your perspective would change.

by Anonymous
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Post ID: @1vxo+1mNWcIZ8

I am sure there is a well-documented and coordinated plan. Perhaps the goal is not to immediately get out of the asset cap. If we are headed to a recession this might be a blessing.
What do banks do with their capital?

  1. Lending: Banks primarily use their capital to provide loans and credit to individuals, businesses, and other entities. This lending activity allows banks to earn interest income, which is a significant revenue source for them.
  2. Investments: Banks may invest a portion of their capital in various financial instruments such as government and corporate bonds, stocks, and other securities. These investments generate returns for the bank, supplementing their income.
  3. Reserves and Liquidity: Banks are required to maintain a certain level of capital reserves as mandated by regulatory authorities. These reserves act as a cushion to absorb potential losses and maintain stability. Additionally, banks hold a portion of their capital in liquid assets to ensure they have sufficient funds readily available to meet customer demands and potential financial stress.
  4. Expansion and Growth: Capital can be used to fuel the expansion and growth of a bank. It can be allocated to opening new branches, acquiring other financial institutions, investing in technology infrastructure, or expanding product offerings and services. >
  5. Regulatory Compliance: Capital plays a crucial role in meeting regulatory requirements and maintaining a strong financial position. Banks must adhere to capital adequacy ratios set by regulatory authorities to ensure they have sufficient capital to absorb potential losses and safeguard against financial risks.
  6. Dividends and Share Buybacks: Banks may distribute a portion of their capital to shareholders in the form of dividends or buy back their own shares. These actions provide returns to investors and help manage the bank's capital structure.
by Anonymous
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Post ID: @1gos+1mNWcIZ8

Falls short? He doesn’t even register…

by Anonymous
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Post ID: @mog+1mNWcIZ8

It is highly improbable that WFC shares will reach $50 again in the near future. This is not 2021 or 2022 when the availability of easy money aided in improving the overall financial situation. The asset cap will continue to be enforced, and interest rates have not reached their peak yet. It is simple to reduce expenses by employing cheaper labor, closing branches, and consolidating offices. However, achieving profitable growth in an environment of rising interest rates, along with the asset cap and regulatory scrutiny, is a challenging task. This is the moment when true capability is put to the test, and unfortunately, Charlie falls short in this regard.

by Anonymous
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Post ID: @vqy+1mNWcIZ8

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