Wells Fargo’s Q1 2025 earnings call kicked off, and bam—stock dumped to the $50s. Low-key as he-l, nearly two hours (1:47, a record?), but Mike Santomassimo (MS) fielded questions like a champ, and it clawed back, phoenix-style. Charlie Scharf was there, chirping occasionally—some vague bit about “servicing customers”—but why’s he so quiet? Thought he’d be front and center.
Takeaway: WF’s stuck in the past—asset cap, “restoring trust,” regulators up their a-s. Same old song: it’s holding back NII, so they’re chasing fees—credit cards, Volkswagen auto lending, maybe investment banking (but John Weiss is retiring, so it’s a long slog). No home lending talk, nada on AI or digital banking like last call—just maintaining the fee grind. Tech? They’re spending, but it’s been a mess forever—remember those outages? MS says they’re “building it right” now, no extra risk. Sure.
Stock tanked early, rose after MS tackled the Q&A—guess clarity helped. They’re obsessed with the asset cap—Charlie’s dreaming of “degrees of freedom” once it’s gone (layoffs incoming?). Fee focus—cards, wealth, underwriting—is their lifeline, less “BS” NII reliance. Forward curve? They all laughed it’s always wrong. (AI note: it’s the market’s guess at future rates—WF thinks it’s bunk, betting on their own path.) Call dragged with regulatory dribble—five consent orders down, yay—but no future spark. CS on CNBC later mumbled something impenetrable.
Mike Santomassimo’s on CNBC’s Money Movers now, post-earnings call, and he’s all praise—teams crushed it, solid performance across the board. Been pouring cash into every business, seeing “lots of growth”—some loan upticks (C&I, auto stabilizing, per call), credit’s rock-solid, customers still in good shape. NII missed, though—CNBC’s harping on it. Guidance unchanged, but MS dodged the “why” like a pro—says it’s tough to match consensus with rates flip-flopping daily. “Look at long-term rates,” he pivots, “growing economy!” Consumers keep spending, cash balances are fine, no pullback yet.
Recession odds? Higher than a few weeks ago—things moving fast, he admits. Equity markets are a rollercoaster; M&A and IPOs need that volatility to chill. Begging the Fed to ditch the asset cap—WF’s ready to roll if regulators play nice. MS keeps it chill: “We focus on what we control, not the Fed.” Credit’s tight, customers sturdy—deflects guidance gripes with a shrug. CNBC hosts looked jittery—NII miss stung—but MS soothed ‘em. Stock’s up, 60.09 to 61.12 by end of show. Guy’s got a knack.