Should be interesting to see how we fair this time around. Earnings Friday before the bell. Can we get back up to 50 or ???
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Our earnings will be fine. We haven’t been able to grow our assets, so we can only take on the best loans and accept the lowest yielding deposits.
Other banks can think about whether a “good” but not “great” client is worth it. We can’t. We can only afford to take the “great” ones.
It’s one of the few good things about the asset cap. The only surprises are scandal and settlement related. The government sees us as an easy target. It can and should give BofA an asset cap for fake accounts and other scandals, but it only needs one bank (Wells) to use as an example.
Maybe that's how S goes down in your group, but I'm a low level manager that reports to a mid-manager and their work is absolutely essential. The amount of corporate BS that they shield me from is the only thing that makes my job possible. It works in reverse also, when higher ups are cluelessly demanding answers about something, they take care of managing my groups response so I can do real work. Not all mid managers are expendable. Maybe yours are playing minesweeper all day, but mine isn't and the most important thing this company needs to do is stop making blanket policies / decisions with no grasp of nuance or reality.
Disclaimer: This comment does not by any means apply to all offshore workers but there are so many examples that fit this scenario. If you are going to compare COST of US vs offshore workers it can't be just about the salary. Taking 4 times as long to get anything done even without the time change, being so timid they can't or won't make a decision or take action without several meetings and approvals where not necessary, not understating policies and documentation, having to correct grammar and written documentation because the language used is incorrect, and too many people without the capability to think of options/solutions outside of a fully documented job aid. Making mistakes that cost days of time and often require more skilled US based employees to jump back in and resolve the issue that could have been done in 1/4 of the time to begin with, where's the "SAVING" there???
I think we will be estimates by quite a bit, bit that is my uneducated and uninformed decision. not that those estimates are great,
The stock price won’t go anywhere until we start showing real progress in cutting expenses and reducing headcount. But it’s hard with this crooked and corrupt culture of middle and low level managers who love to circumvent policies and rules. Examples
- Employees hiring freeze. Ok, I’ll just hire 2x contractors.
- Can’t hire mangers because they won’t have 7 reporting to them. Ok, I’ll just hire analysts and pay them a manager salary and have them supervise all the employee.
I can go on and on…. We HAVE to reduce levels of middle management and bureaucracy. If you are not producing anything and are just recycling everyone else’s work pretending to add value, you need to be let go!
Charlie needs to ax more people. Get the chainsaw going!
Like an earlier poster said, headcount is where it's at now.
Are there people still investing in the shitshow?
IMO, Wells Fargo isn’t going significantly higher until Charlie makes the changes necessary to get the Federal Asset Cap removed. That doesn’t even seem to be a priority for him, so….???
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India Troll
I'll believe this company is serious about cutting costs when they get rid of the ridiculous "diverse suppliers" cr-p. Get rid of all the WF employees "working" on costing us more money and just go with the lowest cost provider. Until that happens, expense ratios are just another example in a long line of excuses to fire people.
The main thing for them to talk about is AI. How employing AI will help efficiency. How they are building their own LLM. How AI will automate customer service. The AI ATM. How AI will be your next robo-advisor when you purchase equities. The AI personal banker.
Will Wells succeed in their AI endeavor?
50, 40, 60…doesn’t matter. The only relevant metric for Wells is now headcount. We need the efficiency ratio down. Cull more. Nothing else matters. If I were the person in charge of making the earnings deck, I’d provide a breakdown between US employees vs. India/Philippines to show the progress of how much cost savings the bank is making by letting go US employees and earn Wall Street’s trust.