Thread regarding Wells Fargo & Co. layoffs

Lots of buzz about the Federal Asset Cap being lifted in early 2025. Are shareholders being overly optimistic?

Why would anyone trust these goons? See misleading comments and conjecture over the past 6 years:

  • Jan 2019 “CEO Tim Sloan expects the bank to operate under the asset cap through the end of the year.”
  • March 2020 ‘Wells Fargo has asked the Federal Reserve to permanently remove a cap on its asset size. The bank said removing the cap would allow it to support businesses and customers affected in the wake of the coronavirus pandemic.” (Nice try lol)
  • Dec 2020 “Top WFC executives expect the sanction to stay in place until late 2021 at the earliest.”
  • April 2021 “Bloomberg, citing anonymous top Wells Fargo executives, says asset cap could run in to 2022.”
  • Sept 2022 “Scharf emphasized enhancement and implementation of appropriate risk and control is the company’s #1 priority.”
  • Dec 2022 “Wells Fargo's Crippling Asset Cap Has Cost the Bank Billions in Profits. But It Might Be a Tailwind in 2023.”
  • Jan 2023 “Wells Fargo acknowledges asset cap to remain in place in to 2024.”
  • May 2023 “Wells Fargo gives three-part lesson in atonement. There are at least three ways a bank can misbehave. It can be downright bad, it can be sloppy, or it can be foolish. But the bank run by Charlie Scharf has been a good example of all three.”
  • May 2023 “Wells Fargo has agreed to pay $1 billion to settle a lawsuit accusing it of defrauding shareholders about its progress in freeing itself from the Federal Asset Cap.”
  • November 2023 “The bank’s top executives believe the first quarter of 2025 will be the earliest that the $1.95 trillion asset cap could be lifted, Bloomberg reported.
  • September 2024 ‘Wells Fargo's latest regulatory setback could delay the timeline for lifting the asset cap and stifle its growth, Wall Street analysts said on Friday.” (Weak safeguards against money laundering and other illegal transactions.)
  • November 2024 “Sen. Warren urges Fed not to lift Wells Fargo’s asset cap. ‘Removing Wells Fargo’s asset cap based on the recommendation of a third-party analysis that Wells Fargo purchased for itself…would harm consumers, threaten our financial stability, and reward a bad bank for continuing a long history of abusive and reckless practices.’ Warren wrote.”
  • November 2024 “Exclusive: Wells Fargo asset cap likely to be lifted next year, sources say.”
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Post ID: @OP+1vOC5lnM

11 replies (most recent on top)

Simple minded people on this thread…lol. Shows how a little bit of knowledge can be a dangerous thing.

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Post ID: @695+1vOC5lnM

Before they think of removing the Federal Asset Cap they should audit work done by I & P to and see how well the controls set in place are working......

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Post ID: @1phz+1vOC5lnM

We keep getting into trouble even AFTER affirming the whole company through RCSA. We clearly can’t manage our own risk

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Post ID: @xyy+1vOC5lnM

It will be lifted

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Post ID: @vas+1vOC5lnM

The buzz is fake news designed to get the stock price up for bonuses. Sell before the great 2025 corporate real estate crash.

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Post ID: @zui+1vOC5lnM

Re @wtz+1vOC5lnM “The buzz is coming from outside the company. This wasn't started internally”

Not true. Executives are speaking about it in meetings and at least one Townhall. Most articles say “citing sources familiar with the matter.” If you think information isn’t purposely leaked to the press from the inside to spike the stock, you are incredibly naive.

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Post ID: @rcw+1vOC5lnM

The buzz is coming from outside the company. This wasn't started internally.

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Post ID: @wtz+1vOC5lnM

I pray every day that it will be. Not because the company 'deserves it' or any nonsense like that, but only because it will hasten the departure of Shart and Powell.

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Post ID: @ejz+1vOC5lnM

With the September 2024 consent order from the OCC I find it highly unlikely that Asset Cap will be lifted in 2025. I don't know why our Board of Directors and shareholders continue to tolerate the C-suite's drastic underperformance.

https://www.occ.treas.gov/news-issuances/news-releases/2024/nr-occ-2024-99.html

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Post ID: @flf+1vOC5lnM

It won't be lifted

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Post ID: @wfr+1vOC5lnM

Half a decade at $30M/year has given us nothing but an underperforming stock price that finally rose with the sector.

Bravo WF BOD, bravo.

This is why, as an employee, the only 401k funds I trust are the non WF funds.

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Post ID: @ide+1vOC5lnM

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