Has there been a mass exodus recently of depositors at WF? Other banks are clamoring for new depositors and offering interest rates of 4, 5+% while WF is paying 0.25%. Is this entirely because the asset cap is still in place, or does Charlie have a thing against deposits? Is he actively trying to k!11 WF?
10 replies (most recent on top)
You can't cross-sell to customers you don't have. Deposits are the often the gateway.
I pulled a couple hundred thou out earlier this year and am getting 4.6% at the bank I moved it to
They will start paying when they need the money to lend. WF has a huge cash stockpile so wont need to pay much higher rates for some time. Now that we don't have mortgages to securitize to get more money to lend that might come sooner.
Asset cap plus we’re only raising rates as much as we need to. It’s a huge competitive advantage to pay a fraction of what other banks pay for deposits.
Just got a coupon in the mail for potential new depositors. Have to create a new Wells Fargo checking account and electronically deposit $1,000 into it in the next 3 months. Then Wells will give me $320. What a deal... hey?
Charlie ki-led mortgage and us working on the bank next
Love this site, it just confirms WF is laying off the rightbpeople, the d-mbest of the d-mb are going bye bye.
Deposits are liabilities. People are moving their money out because they can get much better rates elsewhere.
It's the asset cap. Charlie has given up on actually fixing the bank and getting the asset cap removed, which is why he wants to change the type of assets under management so that what assets the bank does have will be more profitable. He has no intention of trying to get the cap lifted anymore.
One of WF's best-unkept secrets is that the only way it grows deposits is by acquiring banks.