https://www.financemagnates.com/trending/wells-fargo-pays-the-price-for-efficiency/
Improving the efficiency ratio for Wall Street will not do a thing for actual efficiency.
I also believe that this company became so bloated with so many redundant teams, silos, etc. because there was never a concerted effort to actually integrate the Wachovia acquisition. Making it worse, Wachovia had been a serial acquirer itself, which further complicated integration efforts from all of its own legacy acquisitions.
Seems like upper management was content to kick the can down the road, and here we are in a much worse position ten years later. This is notwithstanding the sales scandals, etc… which have snowballed and combined with the bloat problem has created the ultimate cluster that we are today.
@fmz If we're gonna play "what if", WF would still be around if they hadn't been d-mb enough to buy First Interstate. That weakened them enough that Norwest bought them and here we are. Kovacevich and Stumpf both came from Norwest.
Whether Wachovia is 'good or bad' isn't relevant. Once merged we had massive redundancy and did nothing meaningful to resolve the issue for a decade. During that timeframe we EASILY could have done so almost entirely via natural attrition instead of the painful never ending mess we are experiencing now. The faux accounts nonsense was clearly a legacy WF issue, that doesn't change the fact that they should have reduced headcount then, or at least started a long term process to do so. It's almost like they were just operating on hope that the company would somehow achieve massive growth that would justify the headcount. We're all seeing how well that plan worked out.
But instead, Wells Fargo was forced by the federal government to purchase Wachovia. Trust me, Wachovia "Blue" was not the asset we wanted during the Great Recession of 2007/2008. Pick-a-pay still haunts us.
lol taking a shot at Wachovia.
We are in this entire mess because existing Wells Fargo processes and management. They created the cross selling goals which not only led to all of the issues and scrutiny, but led to terrible customer service.
The original Wachovia (Wachovia “blue”) was a solid bank with excellent customer service.
After First Union purchased WB, things got worse but much better than now.
If only Thompson hadn’t pushed to purchase Golden West, Wachovia would still be around and we could be laughing at Wells Fargo from a distance.
This is very true and it's one of the big failures of the WF purchase of Wachovia. There may have been political pressure to do so, but there was a concerted effort to retain as many Wachovia people as possible, which is the opposite of how most such transitions occur. Usually they would clean house. They didn't. Now we're a chitty East coast bank on a fast track to the dust bin of history.
It's amazing that we're firing people who actually make money for wfc but then p1ss money away with a diversity hire for "the head of Philanthropy and Community Impact".
Will the US jobs come back as outsourced openings and H1B visa?
This has nothing to do with U.S. employee efficiency and everything to do with rupee to dollar conversion rate. India employees make significantly less than we do here.
Again, I don’t think this is quite right, and the article underestimates the planned cuts. What Charlie said was that the severance provision would be up to $1 billion more than what was already planned.
"We're looking at something like $750 million to a little less than a billion dollars of severance in the fourth quarter that we weren't anticipating.”—Scharf
Severance pay is treated as a liability on the balance sheet until it has been paid out, but I don’t see it broken down for 2022. Does anyone know where to find this, so that we could get an estimate for 2023’s total provision? To estimate it, I would take the 2022 provision and add $1 billion to it.
The problem is we should have managed this better years ago abd we didn’t.
Chuckles is incompetent.
i like the last statement, “I’m just glad I don’t work for them”