WFV down almost 6%.
JPM only down 0.8%
Chainsaw Charlie knows how to axe people. He doesn't know how to grow a bank. He can't hide behind consent orders anymore.
8 replies (most recent on top)
The problem is that the people in power don't really care. They will keep cutting until they reach the arbitrary number they are looking to hit, then they'll pull the ripcord on the golden parachute. They couldn't care less if the company fails the next day and aren't sufficiently competent to grow any bank. Growth and long term success isn't why they are here. Eradication of the domestic workforce is what they're here for. Nothing more, nothing less.
I am so proud to be an ethnic German. That man is useless an incompetent.
@b0 downsizing and cutting headcount was the name of the game under the asset cap. Efficiency ratio can improve either by cutting headcount with the same net interest income, or by growing NII with the same headcount.
Now that the consent order is lifted, the name of the game is improving the efficiency ratio by growing NII. The street will no longer be impressed headcount reductions. They want to see top line growth both in traditional segments like autos, credit cards, and home equity, but also new products like crypto. Hotel reductions don't mean a damn thing if they don't translate into nimbleness and growth.
@ad Co-pilot was not implemented to make U.S WF workers jobs easier, it was put in to make those overseas jobs easier. Many of those positions require written and/ or email correspondence to the U.S customer, and they struggled with it. Trust me I know, I trained a team in India about 2 years ago and their communications was a huge concern. Since the bank is saving on the average of 50k per year for every person they layoff, Co-pilot wasn't a huge expenditure.
Charlie is here to downsize. Whether there is a consent order or not really isn't relevant. When the powers at be believe that we have right sized the number of employees, he'll leave. Not before.
He was celebrating it. Touting 23 consecutive months of lowering US head count and efficiency.
Jokes on him though they are wasting hundreds of millions on Co-pilot that no one is using.
Yep, I'm going to rearrange my entire portfolio based on one day.
With the cap lifted-WTF ? Zilch from the high-falutin heb !