Thread regarding Wells Fargo & Co. layoffs

Post ID: @1wlf+1kK4I44J

“Scaling back” is the first sign of death in a business and a company. Read about Blockbuster vs Netflix and how wrong Blockbuster’s management was.

@ykz+1kK4I44J
We did not leave mortgage, we scaled back. That is what management is continuing to tell us. Letting go of 9k across the company is no where near the number of hl employees.

Wells will need to become a community lender with no presence allowed in other walks of life. The frauds have (been permitted to) gone on for too long by various managements. No capital markets. No mortgages. No auto lending . Just a basic bank. This is not me saying. This is what Liz Warren said. That is what Hsu is implementing . Why do you think we exited mortgage . Remember we did not scale back because of conditions but LEAVE! Next in line: credit cards.

@abz+1kK4I44J The people about to be axed in WFHM would like a word. Santos specifically referenced “too big” in his statement about divesting the bulk of the mortgage business.

You can’t really group WFC into the “big banks” group about this. The minute they put the asset cap on and hit us with (so far) 2 record breaking penalties we became the outlier and while they will never break up ALL of the big banks they certainly look like they’re coming for us.

Survival of the fittest isn't only for the animal kingdom - I have always thought Charlie was coming to carve this beast up.

Not happening, mega banks help the Feds money printing

It should happen, but won't.

The vague topic of busting up big banks is brought up every now and again to temporarily appease the anti-large bank crowd.

Logistically, the govt has no idea how to bust up any bank in a way that makes improvements. Not to mention all the graft, etc.

Ain't happening.

I agree with the article that the big banks are too big to manage and that Wells Fargo needs to be broken up or taken over.

Fines just penalize the shareholders and the employees. They barely touch the C-Suite and BOD, where the problems begin. Take Charlie out and there are plenty of other equally entitled out-of-touch middle-aged privileged white male bank execs waiting in the wings who will run the bank the exact same way. They all come from the same mold, they all trained under the same types of narcissistic leaders, and they all hang out at the country club together.

It turns out that Warren Buffett was correct when he said our BOD should bring in a new CEO who does not come from Wall Street.

Hsu is a Xi puppet

Behind the paywall:

Big Banks Might Face Breakup, Top Regulator Says
Acting Comptroller of the Currency says size and complexity can make banks too big to manage
WASHINGTON—Big banks may need to be broken into smaller pieces if they become too big to manage and are unable to fix significant regulatory lapses, a top federal banking regulator said in a warning shot across Wall Street on Tuesday.

A bank’s failure to resolve longstanding deficiencies despite reprimands from its regulators and onerous restrictions such as caps on its growth are evidence that a firm is unmanageable and needs to be broken up, acting Comptroller of the Currency Michael Hsu said.

Mr. Hsu’s remarks don’t target any specific bank to be broken up but appear to highlight concerns about firms like Wells Fargo & Co., which has struggled to resolve longstanding problems despite repeated enforcement actions and billions paid in penalties.
Wells, which is overseen by the Office of the Comptroller of the Currency, has said it is dramatically shrinking its home-lending business following a string of scandals and a record fine from the Consumer Financial Protection Bureau to settle allegations that it harmed more than 16 million people with deposit accounts, auto loans and mortgages. It has operated under a growth cap imposed by the Federal Reserve since 2018.

A spokesman for Wells Fargo didn’t immediately respond to a request for comment.

Banks can become so big and complex “that control failures, risk management breakdowns, and negative surprises occur too frequently,” Mr. Hsu said, speaking at the Brookings Institution, a Washington think tank. “Not because of weak management, but because of the sheer size and complexity of the organization.”

“In short, effective management is not infinitely scalable,” he said.

Mr. Hsu said his office already uses a framework to escalate problems at large banks that includes raising penalties for firms that fail to fix problems quickly. Officials are discussing steps to provide more transparency about the framework, he said.

The Office of the Comptroller of the Currency is an independent bureau of the Treasury Department. It oversees about 1,100 banks with total assets of $15 trillion, some two-thirds of the total in the U.S. banking system, making it one of the most powerful regulators alongside the Federal Reserve and the Federal Deposit Insurance Corp.

Tuesday’s remarks are consistent with others made by the Biden administration and its top regulators, who are seeking to address concerns that the steady growth of the nation’s largest banks has introduced new risks to the financial system.

Much of that work to date is focused on how to address a recent wave of regional bank mergers, an issue Mr. Hsu has repeatedly raised as a financial stability concern.
Some officials have also called for tougher punishments against firms that repeatedly violate the law. Rohit Chopra, the head of the CFPB, has argued some recidivists may be unable to operate in a safe and sound manner and ought to lose access to federal deposit insurance or their ability to stay in business.
On Tuesday, Mr. Hsu said the most effective and efficient way to successfully fix issues at a bank deemed too big to manage is to simplify it by divesting businesses, curtailing operations and reducing complexity.

A bank’s size and complexity is the core problem that needs to be solved, he added, “not the weaknesses of its systems and processes or the unwillingness or incompetence of its senior leaders,” he said.

The larger and more expansive a bank’s operations become, the more likely it is to assume that individual problems are isolated and reflective of a bad apple than concerned there might be similar problems lurking elsewhere in the organization, Mr. Hsu said.

While rogue actors do exist, significant problems are typically “multi-causal and reflect deeper, unseen weaknesses, which if unaddressed can manifest as further incidents in the future,” he said.

Separately, the Federal Reserve Tuesday gave instructions to the six largest U.S. banks on how to analyze the impact of several scenarios related to climate change on parts of their portfolios. The pilot program will have no regulatory consequences for the banks and was billed as a learning exercise, Fed officials said.

One scenario envisions a hurricane striking an unspecified location in the northeastern U.S., a test of how the banks’ real-estate portfolios could be affected. Another scenario imagines the U.S. reaching “net zero” emissions of greenhouse gasses by 2050.

From the WSJ article:

A bank’s size and complexity is the core problem that needs to be solved, he added, “not the weaknesses of its systems and processes or the unwillingness or incompetence of its senior leaders,” he said.

Is the end really near?

Break up the criminal enterprises and corrupt, arrogant big banks! Do it now.

This is going to happen

Well now we're in trouble :-/

"*Mr. Hsu’s remarks don’t target any specific bank to be broken up but appear to highlight concerns about firms like Wells Fargo & Co., which has struggled to resolve longstanding problems despite repeated enforcement actions and billions paid in penalties.*"

"A spokesman for Wells Fargo didn’t immediately respond to a request for comment."