plato1976 Posted March 14, 2020 Share Posted March 14, 2020 Does anyone think yesterday's WFC @ 7.5% yield is a steal? frankly I thought so... I don't care whether the stock price can go up or not; just a while ago I was scratching my head to find some investments to provide me 5%+ stable yield, year after year now seems we have plenty Anyone care to guess how likely for WFC to cut their dividends at this point? Link to comment Share on other sites More sharing options...
DooDiligence Posted March 14, 2020 Share Posted March 14, 2020 Buy in haste, repent at leisure. I sure hope Scharf & company can fix this mess. www.nytimes.com/2020/03/04/business/wells-fargo-consumer-financial-protection-bureau.html Link to comment Share on other sites More sharing options...
Foreign Tuffett Posted March 15, 2020 Share Posted March 15, 2020 All the biggest American banks suspending buybacks https://www.fsforum.com/types/press/releases/financial-services-forum-statement-on-share-buybacks/ Link to comment Share on other sites More sharing options...
StubbleJumper Posted March 15, 2020 Share Posted March 15, 2020 All the biggest American banks suspending buybacks https://www.fsforum.com/types/press/releases/financial-services-forum-statement-on-share-buybacks/ Anyone want to bet whether the Fed was twisting some arms? WFC has already had its arm twisted by the Fed back in the financial crisis.... SJ Link to comment Share on other sites More sharing options...
jgyetzer Posted March 16, 2020 Share Posted March 16, 2020 It’s possible. To me this further decreases the likelihood of dividend cut. Link to comment Share on other sites More sharing options...
mcliu Posted March 16, 2020 Share Posted March 16, 2020 There’s gonna be so much capital unless they ramp up lending. Link to comment Share on other sites More sharing options...
kdk77 Posted March 16, 2020 Share Posted March 16, 2020 Good time for the regulators to remove the asset cap. Link to comment Share on other sites More sharing options...
LC Posted March 16, 2020 Share Posted March 16, 2020 There’s gonna be so much capital unless they ramp up lending. That may be the point Link to comment Share on other sites More sharing options...
mcliu Posted March 16, 2020 Share Posted March 16, 2020 There’s gonna be so much capital unless they ramp up lending. That may be the point But as kdk77 says, asset cap.. Link to comment Share on other sites More sharing options...
tng Posted March 16, 2020 Share Posted March 16, 2020 I can't see them cutting the dividend because that is a sign of weakness and it could lead to a run on the bank. If we remember from the financial crisis, signalling is everything. So one advantage for WFC shareholders is that it is returning a larger amount of their earnings as dividends than the other big banks. However, if things do go bad, that could be a disadvantage as the other banks can stealthly save up money by not increasing dividends or buying back stock. Link to comment Share on other sites More sharing options...
peluche Posted March 16, 2020 Share Posted March 16, 2020 https://www.sec.gov/Archives/edgar/data/72971/000112760220010727/xslF345X03/form4.xml Scharf bought 5 million in stock on Friday. Link to comment Share on other sites More sharing options...
ERICOPOLY Posted March 16, 2020 Share Posted March 16, 2020 There’s gonna be so much capital unless they ramp up lending. That may be the point But as kdk77 says, asset cap.. The thought of ramping up lending right now is bewildering to me. Link to comment Share on other sites More sharing options...
Spekulatius Posted March 16, 2020 Share Posted March 16, 2020 There’s gonna be so much capital unless they ramp up lending. That may be the point But as kdk77 says, asset cap.. The thought of ramping up lending right now is bewildering to me. The asset cap for WFC is totally irrelevant right now. Link to comment Share on other sites More sharing options...
mcliu Posted March 17, 2020 Share Posted March 17, 2020 There’s gonna be so much capital unless they ramp up lending. That may be the point But as kdk77 says, asset cap.. The thought of ramping up lending right now is bewildering to me. The asset cap for WFC is totally irrelevant right now. How come? Solvent but illiquid companies need to rollover debt. This is the time to lend. Link to comment Share on other sites More sharing options...
CorpRaider Posted March 17, 2020 Share Posted March 17, 2020 https://www.sec.gov/Archives/edgar/data/72971/000112760220010727/xslF345X03/form4.xml Scharf bought 5 million in stock on Friday. My guy! Link to comment Share on other sites More sharing options...
Guest Schwab711 Posted March 17, 2020 Share Posted March 17, 2020 There’s gonna be so much capital unless they ramp up lending. That may be the point But as kdk77 says, asset cap.. The thought of ramping up lending right now is bewildering to me. The asset cap for WFC is totally irrelevant right now. How come? Solvent but illiquid companies need to rollover debt. This is the time to lend. WFC can only keep so many solvent but illiquid companies afloat. They have large energy exposure. They can't expand their balance sheet to accommodate so they will be fire-selling other assets to deal with draw downs on revolvers. Link to comment Share on other sites More sharing options...
ERICOPOLY Posted March 17, 2020 Share Posted March 17, 2020 There is some funny business going on with WFC this morning. +15% when the S&P500 and the other big banks are at around +4%. Link to comment Share on other sites More sharing options...
Guest Schwab711 Posted March 17, 2020 Share Posted March 17, 2020 Short covering ahead of a short ban? Link to comment Share on other sites More sharing options...
mcliu Posted March 17, 2020 Share Posted March 17, 2020 Fed needs to lift asset cap, this is the time to lend! It’s dumb to use monetary stimulus and simultaneously hold back the 3rd largest bank from lending.. Link to comment Share on other sites More sharing options...
Edward Posted March 17, 2020 Share Posted March 17, 2020 The main problem with WFC is that NIM is going down quite rapidly. It will probably mean 15B$ baseline net profit in a few years instead of 20ish B$, even before all the costs of the scandals. Link to comment Share on other sites More sharing options...
Guest Schwab711 Posted March 17, 2020 Share Posted March 17, 2020 Fed needs to lift asset cap, this is the time to lend! It’s dumb to use monetary stimulus and simultaneously hold back the 3rd largest bank from lending.. I think you are talking your book and hoping. This isn't going to happen. If it did, it will be far too late for WFC. Either the recession isn't that bad or WFC has a risky loan book and no way to grow to dilute their problems. The asset cap is a severe penalty for a bank. Link to comment Share on other sites More sharing options...
mcliu Posted March 17, 2020 Share Posted March 17, 2020 What is WFC exposure to energy? Which loans are going bad? What’s that as a % of total assets? I’m just pointing out the rational position for the fed to ensure liquidity. If anything, commercial mortgage will be much worse than energy, look at how CMBS market is seizing up. Nobody wants to roll debt on hotels, retail and those figures are truly massive. Link to comment Share on other sites More sharing options...
sundin Posted March 17, 2020 Share Posted March 17, 2020 What is WFC exposure to energy? Which loans are going bad? What’s that as a % of total assets? I’m just pointing out the rational position for the fed to ensure liquidity. If anything, commercial mortgage will be much worse than energy, look at how CMBS market is seizing up. Nobody wants to roll debt on hotels, retail and those figures are truly massive. <1% exposure as of total assets according to this https://www.marketwatch.com/story/heres-a-breakdown-of-us-bank-exposure-to-the-energy-industry-as-oil-prices-tank-2020-03-12 Link to comment Share on other sites More sharing options...
gary17 Posted March 19, 2020 Share Posted March 19, 2020 I noticed the 10 year is now back to 1.2% i guess this is bad for the economy but good for Banks? Link to comment Share on other sites More sharing options...
plato1976 Posted March 21, 2020 Share Posted March 21, 2020 Isn't this fine for a market cap of 100B only? The main problem with WFC is that NIM is going down quite rapidly. It will probably mean 15B$ baseline net profit in a few years instead of 20ish B$, even before all the costs of the scandals. Link to comment Share on other sites More sharing options...
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