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"Wells Fargo is a hot mess. It has only itself to blame."
I like and appreciate the phrase "hot mess" applied to just about anything when appropriate.
https://www.cnn.com/2020/07/15/investing/wells-fargo-bank-dividend/index.html
New York (CNN Business)Wells Fargo has gone from one of America's strongest big banks to easily the weakest.
For years, Wells Fargo's laundry list of scandals and legal problems had only a fleeting impact on its once-monstrous bottom line. That is no longer the case. Wells Fargo (WFC) is the only major lender during the pandemic to lose money -- its first loss since the 2008 financial crisis. And that red ink was driven in large part by the crushing penalties imposed two years ago by the Federal Reserve for abusing customers.
...
Wells Fargo is still in the penalty box with the Fed
Wells Fargo is getting squeezed by the $2 trillion asset cap imposed by the Fed. Those unprecedented sanctions prevent Wells Fargo from growing its balance sheet -- at a time when growth is absolutely necessary because interest rates are at rock bottom.
...
Still settling disputes with customers
But it's not just about the asset cap. Wells Fargo's operating losses jumped by $755 million during the second quarter because of "increased customer remediation accruals for a variety of matters and higher litigation accruals."
...
Wells Fargo's deep dividend cut
But the pain isn't over for employees and shareholders. Wells Fargo expects to slash its dividend by 80% -- far more than analysts had anticipated
...
Here come the job cuts
Not surprisingly, Wells Fargo's struggles could force some serious belt tightening. "We've been extremely inefficient for too long," Scharf said.
...
For years, Wells Fargo's laundry list of scandals and legal problems had only a fleeting impact on its once-monstrous bottom line. That is no longer the case. Wells Fargo (WFC) is the only major lender during the pandemic to lose money -- its first loss since the 2008 financial crisis. And that red ink was driven in large part by the crushing penalties imposed two years ago by the Federal Reserve for abusing customers.
...
Wells Fargo is still in the penalty box with the Fed
Wells Fargo is getting squeezed by the $2 trillion asset cap imposed by the Fed. Those unprecedented sanctions prevent Wells Fargo from growing its balance sheet -- at a time when growth is absolutely necessary because interest rates are at rock bottom.
...
Still settling disputes with customers
But it's not just about the asset cap. Wells Fargo's operating losses jumped by $755 million during the second quarter because of "increased customer remediation accruals for a variety of matters and higher litigation accruals."
...
Wells Fargo's deep dividend cut
But the pain isn't over for employees and shareholders. Wells Fargo expects to slash its dividend by 80% -- far more than analysts had anticipated
...
Here come the job cuts
Not surprisingly, Wells Fargo's struggles could force some serious belt tightening. "We've been extremely inefficient for too long," Scharf said.
...
3 replies
= new reply since forum marked as read
= new reply since forum marked as read
After they jerked me around on a loan I cant wait to change banks..... After I move..
Ok so which robber bank has the least dings on it? Chase? BOA? Maybe I'll try a credit union.. But who? or is it whom...... The grammar police will tell me I guess...
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