Thread regarding Wells Fargo & Co. layoffs

CIB Markets has been doing well. You need context for the numbers to see that.

Some FICC and equities revenue sources require balance sheet support, and that has been reduced because of the asset cap. So revenue is flat or down, but the revenue we lost is actually the least valuable revenue.

Wells is not going to give up on CIB. It is important for some of our biggest clients who do a lot of business with the rest of the bank.

WF was ranked in the top 10 for advisory this year. That’s a highly valuable fee business. We’ve never ranked that high. Clear progress there.

CIB ops has a lot of bloat, but because it is viewed as a growth market for the bank, CIB ops is probably safer than back office anywhere else in the bank (but still not safe). Ops people cost comparatively nothing vs front office, where a single MD can make millions. Headcount is not a good indicator of how much it is costing the bank.

If the asset cap were lifted tomorrow, Wells would turn on the many machines at CIB that it has had to idle, and it would start growing very quickly.

These are the worst days for CIB, but it’s still pretty good. If the people in other corners of the bank could stop doing bad things, we’d be set loose and get back to printing money.

Alright, I need to take a shower. I feel dirty after defending the bank this much.

“All hype and no substance” needs to be our new corporate moto. The Emperor has no clothes. Unfortunately, no one wants to tell Charlie that he’s violating the dress code.🤦🏻‍♂️

Didn't an article just come out with how Wells gained tremendous market share in a down market? Something about moving to No 8? If so, looks like the ship is turning. I think Charlie will invest in that segment as well as WIM. I also think exiting a lot of the mortgage pieces will help shift that focus.

It's not necessarily trying to win everything in the CIB arena, but to just be a competitive player and it helps diversify WFC revenue. This is essentially what JPM and BAC have done.

My personal opinion, after many years with the bank, is that it is an ego trip for Charlie. I’ve seen other out-of-touch-with-the-real-world pipe dreams of the C-Suite go down in a ball of flames, after wasting the bank’s financial resources time and focus when we have yet to get the basics right.

Charlie lives in the ivory tower and wants to say he was the CEO who finally turned Wells Fargo into a major player in Investment Banking. And yet the front lines are struggling with the very basics of banking and the back end is struggling to keep up because the technology, the red tape and the whole operation is permanently stuck in the 1980s.

Charlie is hoping to divert everyone’s attention away from the hot mess that Wells Fargo is by making false promises for a better day via attempting to find success in a business which other banks have dominated for decades. We are a day late and a dollar short. And, most importantly, Wells Fargo is not the name that any company wants on their offerings.