BAC up
C up
JPM up
GS up
broad market Financials up 1%
WFC down.
Because you can't fire your way to growth and you can't AI your way to efficiency (all you are doing is automating broken processes, ensuring they stay broken). Ford found this out the hard way and ended up hiring back 350 engineers they fired.
Wells efficiency ratio for the full year 2020 was 77.8%. from 2016-2019 it hovered in the high 60s (66% for 2019).
The year before the scandal, 2015, our efficiency ratio was 58.5%.
q2 2026, the efficiency ratio was 60%. We are on track for full year efficiency ratio of around 62%. Q1 is always higher due to bonuses.
So, no you can check the earnings calls... non interest expenses and employee costs have not gone up under CF.
for contrast: JP Morgan efficiency ratio is 53%-54%. So we have a ways to go, through some combination of more headcount reduction and growth.
I don't know but it wouldn't surprise me. He pays literally billions for people not to work (severance) and pays contractors much more than internal people for the same job. There's also been a huge increase on executive and director level headcount as massive salaries, and generally higher wages overall since the post merger era. It's not hard to believe that employee expenses are close to flat even with all the headcount reductions.
@jm The efficiency ratio is a thing to look at. It has improved… by how little?
@jm "keeping employee costs the same as when there were 272K" ... i dont think thats true. Source?
The Market recognizes that WFC continuously lags competitors (even the comparative sh-t-show at Citi), that Schart and Co have slashed employees by 25% while somehow keeping employee costs the same as when there were 272K, that Net Interest Margins have compressed Quarter over Quarter, and that the company has not landed any significant M&A or other deals (that actually completed) despite all the resources put into an area that WFC historically has no talent in.
All this adds up to stock price reduction....it would be worse if the Schart-stain hadn't bought back shares by the truckload every Quarter to prop it up.
@bp Yes. Since Jan ‘16 JPM stock outperformed WFC by some 7x, while since Jan ‘17 (after the widespread fraud was known) the outperform was still a whopping 6x.
The tape don’t lie.
Plot me cumulative return WF vs JPM (or anybody else) since (either right before or after the corruption scandal in 2016).
@b9 I want the current executive team to fail as hard as possible. I wouldn't mind for the business to continue, though I don't think it'll be nearly as successful as it used to be since all Scharf has done is ki-l work in the areas old-school WF thrived in and try to make WF a clone of other wall st banks.
However, the board has sent the clear message that Scharf is their guy, for better, or for worse. Buffet sold all his WF as soon as they agreed to a wall st CEO. My money is on him being right, not the board, and certainly not Scharf, so with the current situation, WF will have to fail for my desire to come true.
@ap I never understood why people pray for their own employer to fail.
Couldn’t happen to a better company, or a better CEO! Wishing the best for this POS bank
@a9
How to tell the world you know nothing about the markets.
Maybe a little buy the rumor sell the news.
As stated below, Wells has been on a little run so this could just be profit taking on the news.
Regardless of earnings being up or down, HY sees it as a signal that they need to fire more American workers. There's literally no financial result that would indicate, to them, that they should do anything else.
Wells is level on intra-day..
And up on the:
5 day
1 mo
3 mos
YTD
1 yr
3 yr
5 yr
So, what focused time period are you trying to base your post on? The like 10:47 AM price?
You can train a monkey to only cut headcount. True business leaders with a freaking VISION lead companies deeper into existing markets, strengthen customer relationships and penetrate/grow new areas of the business.
This current clown show can't even get a damn AI email correct over the past 2-3 months.
It will run its course and be revealed for what it is.... eventually. A gutted company with little intellectual capital remaining that will require years to repair.