Thread regarding Wells Fargo & Co. layoffs

@dy Chainsaw is a follower not a leader. If they relax the rules to make mortages profitable he'll be in it. It's a relationship product that gets WF into autos, credit cards, even portfolios and wealth management.

doesnt meam STL is coming back. All the trading will gappen in Dallas or Charlotte, probably Charlotte.

WF was the largest home mortgage lender in the US 10 years ago. It is a product we lead with for a relationship. Yeah Rocket Mortgage kicked our tail. BUT between it and Home Equity it was a solid business that had sustainable returns.

@OP
Chainsaw said a few years ago on a town hall or some platform where he spouts his nonsense that he didn't want to be in the mortgage business. WF is all about the FAs and only FAs - nothing else matters. Doesn't matter if the mortgage piece drove profits.

He's transformed WF into a company it's never been. WF spent decades building a community presence and now? Now, WF has retreated from the community - unless it's in NY (soon to be FL) and then other places that are cheaper so WF can hire cheaper labor. It's not WF anymore...

And how soon before he's selling WF for parts?

@an there used to be a fairly large mortgage trading floor in STL. Maybe around 100 people? Now there's about 5.

Shart is completely incapable of taking advantage of these kinds of changes, and thanks to his destruction of the mortgage group there's no one else that can do so either. Once again our competitors will feast while we waste time on finding new and creative ways to torment employees into quiting. That's literally all Shart knows or cares about. He has zero leadership skills, zero vision, and zero knowledge in how to grow a bank.

Bright future for default servicing!

@aj Not just WF mortage is now at a skeleton crew. All the modeling and risk functions. Originating mortgages requires hedging them too. Lots of functions that were slashed over the last 6 years. Mebbe Charlie will just let Chase and BoA have the business.

WF mortgage is down to a skeleton crew already. Most of the mortgage team is tied to WIM and HNW clients. Curious if they would get back into the mass market. It will take a lot to build it back up.

I wonder how much of the increase in deposits is done with our Somalian clients.

@ad
No YOU give ME a break!! At the link you provided, just scroll down to see the quarterlies. 5B going back a 15 yrs or more! There were times when loan issue worries caused money to be held back, but then that was released in future quarters as the losses didn't materialize. I stand by my comments of 5+ billion per quarter. Chainsaw has done NOTHING other than cut headcount. Gee, wonder how we ever made so much in the past with NO HEADCOUNT CUTS????
How about because we employees all pitched in, we built infrastructure, and we plugged holes in the machinery when needed to keep the bank running. BTW - I've got more than 2 decades at "The Firm" and early on I was always amazed at how much money WF actually made all the time.

@a9 then you haven't been there long.

https://www.macrotrends.net/stocks/charts/WFC/wells-fargo/net-income

profit up only because of headcount reductions

@a2
give me a break, WF has been earing about 5+ billion every quarter (after exp) for as long as I've been there. Has nothing to do with chainsaw. Has everything to do with the institution of the bank itself. (employees, products, prices)

@a2 By trimming fat under the asset cap

Building muscle requires different skills.

@OP
You're joking, right? In case you haven't noticed, along with cutting services and offerings, he has successfully maintained constant PROFITS. In the BILLIONS. EVERY quarter... EVERY year.

Say what you like, Charlie and his followers know what it takes to make money.

And nobody wants to work at Wells? Wanna bet...