Wells Fargo Executives Expect Fed’s Growth Cap to Last Into 2025
How many ways can Charlie Scharf fail, and our Board will keep rewarding him with $24.5 Million per year?
These F’ers are taking us all for a ride.
28 replies (most recent on top)
CAP to be lifted in early 2024.
You su-k and are an absolute bottom feeder. Sorry you’re about to get an inconsistently meets in a couple months.
"Institution knowledge is not with the senior managers, it’s with the senior individuals contributors."
Shockingly inaccurate assessment in my group. Maybe in yours it's different.
Just to be clear - I couldn’t care less whether Wells Fargo gets out from under the asset cap or not. If it ever happens - it will be total bs.
I think the Feds are trying to force an innately corrupt organization in to not exploiting customers and shareholders. To me, it’s like asking the mob to “please play nice” and then allowing the mob bosses to continue to get rich while they promise they are going to become good honest citizens at some unspecified point down the road. Our C-Suite is driven by greed and they will always find new ways to exploit customers and shareholders.
The ONLY reason I don’t want to see Wells be shut down tomorrow is that innocent employees will lose their jobs. But that is what SHOULD happen without any doubt.
Fail? The guy has lived up to his name "Chainsaw Charlie." 40k of WF tards are gone.....more to come.
https://www.reuters.com/business/wells-fargo-cfo-expects-more-layoffs-ahead-2023-09-12/
Charlie may be secretly betting with Credit Default Swap against Wells Fargo. I would not be surprised if he is brokering insider trading.
Anyone going to be surprised when we find out CS is betting on WF failure, and he cashes in on driving the bank into the ground? Can’t wait to see this docuseries on Netflix in a few years - How greed and CEOs destroyed American corporations.
I know everyone has been so focused on collaboration with RTO, and tech people on DEI and stable operations, but please open your eyes to the pulse or lack there of in this company. Stop relying on news to know what’s happening around the water cooler at hells Fargo
CAP will not be lifted in 2025.
CAP should NEVER be lifted.
WF s/b sold off. That's been Scharf's plan feom the get go. Fox in the h-nhouse, Trojan horse. Pick your metaphor.
To his mentor, Dimon, go the spoils. AAARG!
We should all be prepared Shart and BOD could sell the company in pieces to unlock value. Who is the biggest buyer of bank parts? None other than sharts mentor , who he also employs his son in law
You all have a front row seat internally. Open your eyes. No need to listen to public remarks. You SEE the real scoop . Common knowledge
The CAP should never be lifted. Stump and Sloan ki-led WF and now it gets what it deserves
RCSA resources were so weak and incompetent that they weren’t even able to identify the major risks in my area. I suppose something is better than nothing in going through this exercise, but I wouldn’t take too much comfort in this process solving our risk and control problems. Management compensations are misaligned and there isn’t sufficient accountability. We need to hit refresh and get rid of ALL the old guards! Institution knowledge is not with the senior managers, it’s with the senior individuals contributors.
The cap is still in place because of one thing; poor leadership.
Yet that same leadership has been rewarded with hundreds of millions of dollars over the time the cap has been in place. What we need to do to satisfy the cap is not overly complex. Any legit leadership chain could do it. We’ve had bumbling mo--ns inseat instead of capable leaders
A blindfolded monkey throwing darts at a board could have made better decisions over the past 4 years than Charlie has.
The monkey also wouldn’t have been paid 100,000,000 so double win.
@1gqf+1puQnO3R Excellent point. Guessing at least half risk and control as well as nearly all the LOB governance teams will be chopped once the cap if lifted. Am sure Shart and CFO are banking on that as a huge windfall coming out of the cap. Hope the cap stays on as long as possible
@1pwb+1puQnO3R Time to stop following public and watch internal. Something tells me your internal savyness skills could use sharpening
This timeframe coincidentally happens to correspond exactly with what my group's manager told us recently, that in the next two years, we will be forced back into the office or laid off.
I doubt it will happen even in 2025. Funny thing is, I don't know why any of us should be hoping for it. It's highly likely that a lot of US-based WF jobs will be dumped as soon as the cap is lifted and the execs are less worried about proving anything to the fed / regulators. It will turn into yet another excuse to fire thousands of people. If you don't own company stock, and you probably shouldn't, there's not much in it for you for the cap to be lifted.
We on the inside knew this because as pathetic as the RCSA process has been, it is still surfacing many gaps. Just imagine how dysfunctional this place must be. These RCSA gaps take time to correct and then tested. So put 2+2 together and you figure there is no way asset cap is getting lifted before 2025 and that’s the best case scenario.
Bloomberg) -- Wells Fargo & Co. executives, restrained for more than five years by a costly Federal Reserve-imposed asset cap, expect the restriction on growth to last at least another year.
The firm’s top brass privately see the first quarter of 2025 as the earliest the sanction could be lifted, according to people familiar with the matter. The expectation is driven by the steps still needed to satisfy the Fed’s order and the perceived low chance of the approval process being fast-tracked in an election year, the people said, asking not to be identified discussing the internal deliberations.
That timeline would mean Chief Executive Officer Charlie Scharf will hit a half-decade in his role before escaping the penalty, underscoring Wells Fargo’s long road to overcoming a series of scandals that erupted in 2016. Initially viewed as a fairly quick undertaking, the cap has already lingered far longer than both Wells Fargo executives and Fed officials originally expected.
Along the way, the bank has missed out on billions in revenue and watched its biggest rivals add trillions to their balance sheets. Wells Fargo’s market capitalization is less than half what it was the day the penalty was imposed.
Representatives for Wells Fargo and the Fed declined to comment.
Janet Yellen slapped Wells Fargo with the order, which limits the bank to its size at the end of 2017, as her last act as Fed chair in early 2018, citing a pattern of consumer abuses and compliance lapses. At the time, Wells Fargo executives said they could imagine satisfying the requirements to get the cap lifted by the end of that year. They extended that guidance twice and then withdrew it.
Scharf inherited the restriction when he took over at the fourth-largest US bank four years ago, and has declined to provide a prediction for when it might get lifted. He’s repeatedly said that regulatory work is his top priority but timing is ultimately the Fed’s decision. Fed officials have refrained from publicly commenting on timing.
“When we look at the work we have to get done, the fact that it’s there is a statement of the reality that we still have more work to do,” Scharf said on a call with analysts in July. “We’ve been very careful not to put dates out there because we have to do our work and then our regulators have to take a look at it and see if it’s done to their satisfaction.”
While it’s typical for banks to spend years working through regulatory orders, the Fed’s sanction was designed so the asset cap could be removed before the order in its entirety. To get out from under the cap, Wells Fargo had to submit plans to bolster board effectiveness and risk management, get those plans approved, implement them and then go through a third-party review. Then the entire Fed board has to agree to end the punishment.
Just getting the plan approved took years, with Scharf and his team finally scoring the crucial nod nearly three years ago, after earlier plans under Scharf’s predecessor had been rejected. The firm is currently implementing the changes and undergoing the third-party review, a process that will extend well into next year, the people said.
Under the restriction, Wells Fargo is limited to $1.95 trillion in assets. Since it’s been in place, JPMorgan Chase & Co., the biggest US bank, has added $1.4 trillion to its balance sheet and, at $3.9 trillion in assets, was more than double Wells Fargo’s size as of Sept. 30.
Respectfully, to those who say “common knowledge”. I follow all public comments on the Asset Cap very closely, and the only “knowledge” that has been communicated is that Wells Fargo execs keep giving ETA’s one year in to the future and then keep missing it by a landslide.
Here’s the article link. It is behind a paywall on Bloomberg site
https://www.bloomberg.com/news/articles/2023-11-08/wells-fargo-executives-expect-fed-s-growth-cap-to-last-into-2025
Nothing new and well understood timeline. What we need to do is accelerate the cost cutting. What I struggle to comprehend with is, why do we have so many tenured legacy Wells Fargo managers around. Many have few or no direct reports at all. Those that have direct reports have literally delegated all their responsibilities to the senior team members. What the F* are they doing all day? Huge compensation with little to no measures of success nor accountability. Progress is slow and accountability is still lacking.
I mean this has been relatively common knowledge. Terms of the order say 1) WFC needs to do the work 2) frb needs to validate it with 3rd party.
It’s 2024 basically and we’re still working on it. Validation of this magnitude will take a year.
That said Shart is a failure. That will be 6 years on his watch of a cap. Anyone with a clue could have had this done. He had bad people in key roles like former CRO, chief control exec , various others.
It’s a Bloomberg article. It’s behind a firewall and below is all I could get with my limited access. Perhaps someone else will be able to paste the entire article.
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Wells Fargo Executives Expect Fed’s Growth Cap to Last Into 2025
Restraint has already been in place for more than five years
Asset cap has crimped growth as competitors added trillions
By Hannah Levitt
November 8, 2023 at 8:29 AM PST
Wells Fargo & Co. executives, restrained for more than five years by a costly Federal Reserve-imposed asset cap, expect the restriction on growth to last at least another year.
The firm’s top brass privately see the first quarter of 2025 as the earliest the sanction could be lifted, according to people familiar with the matter.
CS & Co. and WF BOD Sleeping in the job. Shareholders should file another class action lawsuit!
Link?
Yup! All part of Charlie’s master plan. Get CEO gig, hire failed JPMC friends/cronies, bleed WF dry w inflated salaries “working”positions they are fully unqualified for while making existing WF OGs miserable w stack rank, etc, hoping they’ll quit so your bonus will be higher