Jump to content

WFC - Wells Fargo


Viking

Recommended Posts

 

I am wondering just how messed up this company is. The negative stories just keep coming...

Link to comment
Share on other sites

  • Replies 2.1k
  • Created
  • Last Reply

Top Posters In This Topic

 

I am wondering just how messed up this company is. The negative stories just keep coming...

 

It appears like rotten to the core in terms of culture. Not worth investing in, imo and certainly not worth a premium to BAC. I think even C might be a better managed bank at this point.

 

In the end, this all will mean years of forgone growth for WFC.

Link to comment
Share on other sites

Guest longinvestor

I am wondering if WFC goes the way of American Express, some 20 years ago. They spun off the investment management business into Ameriprise. I was a customer of Ameriprise, the bank portion was OK, the investment management part was also rotten.

 

Hmmm...investment management=Rotten then, rotten now. Buffett promptly unloaded the Ameriprise stock. Wonder if this could be on the cards for WFC? Return to roots. 

Link to comment
Share on other sites

I think it's important to keep the time frame of this "socalled "new" bad" story about the activities at WFC in mind.

The time frame when these changes occurred in wealth management is the concerning part. It looks like they just ramped this up, after the problems at the bank gave surfaced and management was presumably fixing them. Now it seems that at the same time, they amped up the sales pressure at their investment advisory business to maybe compensate.

 

Seems rotten at the core to me.

Link to comment
Share on other sites

I think it's important to keep the time frame of this "socalled "new" bad" story about the activities at WFC in mind.

The time frame when these changes occurred in wealth management is the concerning part. It looks like they just ramped this up, after the problems at the bank gave surfaced and management was presumably fixing them. Now it seems that at the same time, they amped up the sales pressure at their investment advisory business to maybe compensate.

 

Seems rotten at the core to me.

 

That's definitely the culture.

Link to comment
Share on other sites

Take your rotten comments somewhere else. They're doing the right thing, fixing problems, getting back on track. All of these issues are minor fixes, makes for great negative headlines, and punitive commentary.

 

Have you ever worked anywhere with a toxic culture?  A few platitudes and signs on the wall don't fix things.

 

Not everything can be fixed by armchair quarterbacking...

 

Link to comment
Share on other sites

Well it takes time to turn an oil tanker, but if they can get their cost structure in line with those of the other big banks (and I can't see a reason why they shouldn't) than the stock is cheap and a better deal than BOA. I'll gladly add in the low fifties. 

Link to comment
Share on other sites

Take your rotten comments somewhere else. They're doing the right thing, fixing problems, getting back on track. All of these issues are minor fixes, makes for great negative headlines, and punitive commentary.

 

Have you ever worked anywhere with a toxic culture?  A few platitudes and signs on the wall don't fix things.

 

Not everything can be fixed by armchair quarterbacking...

 

I think it's even more evident at an institution like WFC or really any large bank. The branches don't really have a great association/relationship with corporate. The people there, for the most part, are paid poorly and know how much more the big wigs make. If something goes wrong, it's always them who get whacked first and they know it. They have to see all the branches and jobs being cut across the country which is likely a constant stress. I'd imagine less so now, but certainly not too long ago there was also a stigma attached to working for "the evil greedy banks". Not to mention the mood in the branches often resembles the excitement one has during activities like watching paint dry or water boil.

Link to comment
Share on other sites

 

I feel they are doing the right thing. This is the Fidelity’s model.

People who are complaining here is the “portfolio manager”/advisors, because their pay is going down. The old model is less cost efficient and the new model is better for most customers and lower costs. Nowadays customers are becoming  more sophisticated and they know what products they want. For WFC, asset gathering and providing a lot of low costs products to customers is a better business model.

 

 

Link to comment
Share on other sites

 

I feel they are doing the right thing. This is the Fidelity’s model.

People who are complaining here is the “portfolio manager”/advisors, because their pay is going down. The old model is less cost efficient and the new model is better for most customers and lower costs. Nowadays customers are becoming  more sophisticated and they know what products they want. For WFC, asset gathering and providing a lot of low costs products to customers is a better business model.

 

This is fine, when WFC would be upfront about it. At least with Fidelity, the product is in fact low cost  and generally, Fidelity funds or ETFs are OK. I am not in the high networth bucket, but customer service is good too and you get a human on the phone very quickly.

 

I have and investment account to WFC too and that it definitely not the case with them. I am only stick around with WFC because of the 100 free trades with the PMA (grandfathered) and recently I am questioning even that.

 

 

The problem with WFC is that claim to sell and individualized product, but it’s really an apparently poorly reforming roboadvisor. Is there any reason to stick around with them as a customer or working as a financial advisor for WFC after you read this article?

Link to comment
Share on other sites

From what I heard, there is a lot of evil financial advisors. A huge percentage of them try to make money by getting the clients to trade more. A lot of them don’t act for the best interests of the clients. The whole industry is rotted like this. Doing this is good for customers as things are more standardized, and WFC won’t get into trouble. Certainly there are execution challenges, but over time these problems are fixable. The old model is probably very profitable for these advisors but not very profitable for shareholders and can’t scale to very big size.

Link to comment
Share on other sites

I think it's important to keep the time frame of this "socalled "new" bad" story about the activities at WFC in mind.

The time frame when these changes occurred in wealth management is the concerning part. It looks like they just ramped this up, after the problems at the bank gave surfaced and management was presumably fixing them. Now it seems that at the same time, they amped up the sales pressure at their investment advisory business to maybe compensate.

 

Seems rotten at the core to me.

 

Spekulatius,

 

Based on your post I've reread the article on Yahoo Finance today. It appears to me now, that I've got the last part of the article totally wrong while reading it the first time, sorry.

Link to comment
Share on other sites

  • 3 weeks later...

”All 11 winners work for the bank on Branham Lane, where customers poured in Monday to congratulate them. And the winners must love their jobs, because even after they won the $543 million jackpot last month, they said they planned to keep working. Several of the employees were back at work Monday.

Customers said the office definitely has a different vibe.

 

https://www.nbcconnecticut.com/news/national-international/Mega-Millions-Winners-Return-to-Work-at-Wells-Fargo-in-San-Jose-490197331.html?_osource=SocialFlowFB_CTBrand

 

Link to comment
Share on other sites

”All 11 winners work for the bank on Branham Lane, where customers poured in Monday to congratulate them. And the winners must love their jobs, because even after they won the $543 million jackpot last month, they said they planned to keep working...

 

... since they still can't afford a house in San Jose even with the winnings.  8)  ;D  :P

 

 

 

JK, congrats and all that.

 

 

Link to comment
Share on other sites

These guys would be stupid to stay in CA. It is smart to keep working, until they have figured out what to do with that windfall.

 

OT. Actually there are still some affordable and nice places in CA, especially if you don't need to work.

Sinking large part of winnings into Silly Valley RE is probably not the best choice though.

Link to comment
Share on other sites

  • 2 months later...
  • 2 weeks later...

Any ideas why they are doing this?

 

Wells Fargo Wants a Bigger Down Payment on That House in Greenwich

https://finance.yahoo.com/news/wells-fargo-wants-bigger-down-100000466.html

this might be a little backwards

 

the problem was more cultural than about the underwriting on the loans themselves

 

before the latest headline crisis, Wells was already stepping in its own way, unfortunately, it looks to be getting worse

 

Link to comment
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now



×
×
  • Create New...