Wells Fargo to eliminate up to 26,500 employees

[Puffnstuff]

I suppose that the writing has been on the wall for some time since they've been getting into trouble repeatedly. This move is said to be in response to rising costs but if it were properly managed I don't believe this would be necessary which I find disconcerting.

With the most recent round of publicized issues I've moved over to a local credit union and am about to remove all of my funds from Wells Fargo as I'm losing confidence in them as a bank. I wonder just how long it will be before the FDIC steps in? I've placed a link so you can see just how many have fallen.

https://money.cnn.com/2018/09/20/news/companies/wells-fargo-job-cuts/index.html
https://www.fdic.gov/bank/individual/failed/banklist.html

 

[Jimzz]

"I've moved over to a local credit union and am about to remove all of my funds from Wells Fargo"

Did the same thing maybe 6 or so years ago. Better rates and customer service. Wish more people would use credit Unions and make banks competitive again.

 

[realibrad]

Hmmm...

So the regulation that pushed for smaller banks closing or being bought and left us with fewer banks now means when one bank fails, massive numbers of people have to be let go.

This will be a good thing in the long run as they must have massive pressure now to get better.

 

[s0me0nesmind1]

Meh, honestly I really wish mom and pop would die so that they all jump on the online banking bandwagon. Every major brick and mortar bank is a giant piece of shit that (much like airlines) now profit under fees instead of what they were originally built to be profit from.

I moved away from these banks a LONG time ago. I keep opening chase accounts yearly just to do the minimum for their $300 Checking and $200 Savings bonus then I immediately close it. Rinse and repeat yearly. Same goes with Wells Fargo. I do have one small BOA account that I keep open just in case, overall I leave a very small amount of funds (~$500) just incase I need to grab some cash quickly since it's right down the road from me.

Most of my banking though I do with Discover Bank. They always keep their savings rates competitive.

Hmmm...

So the regulation that pushed for smaller banks closing or being bought and left us with fewer banks now means when one bank fails, massive numbers of people have to be let go.

This will be a good thing in the long run as they must have massive pressure now to get better.

Part of it is also any new customers are likely of the last 2 generations - which understand that most things can be accomplished with online banking.

Even if it isn't accomplished with online banking, banks are now installing kiosks in their branches that can do most of what people want as well.

 

[s0me0nesmind1]

"I've moved over to a local credit union and am about to remove all of my funds from Wells Fargo"

Did the same thing maybe 6 or so years ago. Better rates and customer service. Wish more people would use credit Unions and make banks competitive again.

Yeah like I said above, I think once old people die off that might very well be the case.

My mother in law still banks with Chase, carries cash, and probably also doesn't realize you can cash checks with your phone.

So if you still do that kind of stupid stuff - I can understand why lots of locations can appeal to you.

 

[Chromagnus]

Yeah like I said above, I think once old people die off that might very well be the case.

My mother in law still banks with Chase, carries cash, and probably also doesn't realize you can cash checks with your phone.

So if you still do that kind of stupid stuff - I can understand why lots of locations can appeal to you.

I spent 3 years living in a state where there were no physical locations for my main bank and it literally didn't matter because I can and prefer to do everything online. The only time I've even been in a bank in the last five years was because I had to physically go into a bank to do the money transfer for the down payment on my house. I would be interested to know how many of the employees being laid off will be from lower physical traffic in banks.

 

[IronWing]

It's my bad. I keep a WF account just for the ATM locations. I never pay fees and only lose about $15/year in foregone interest. WF spends more than that sending me loan offers.

 

[Dulanic]

I've always used the bank that benefits me the most. For a long time that was Ally but now it's actually BofA just because of their preferred rewards. I'm in love /w my card giving me 2.625% on everything and 3.5% on travel and dining.... I really can't beat that. I still keep savings elsewhere, but at least moved my vanguard IRA to Merrill to get that bonus. Still the vanguard fund, so what do I care.

But I doubt i'd keep Wells if I had them.

 

[Puffnstuff]

It's my bad. I keep a WF account just for the ATM locations.

Walmart is my preferred no fee ATM location and I can conduct that transaction when I shop there at any checkout/self checkout in the store.

 

[Puffnstuff]

I've always used the bank that benefits me the most.

I was at Wachovia when it was absorbed by WF so I just remained there until their most recent troubles. I'm not overly concerned about getting cash while on the road as indicated by my post #8.

 

[FIVR]

I only bank with Wells Fargo. All banks are scams, at least they are honest and open about being a scam.

 

[s0me0nesmind1]

I've always used the bank that benefits me the most. For a long time that was Ally but now it's actually BofA just because of their preferred rewards. I'm in love /w my card giving me 2.625% on everything and 3.5% on travel and dining.... I really can't beat that. I still keep savings elsewhere, but at least moved my vanguard IRA to Merrill to get that bonus. Still the vanguard fund, so what do I care.

But I doubt i'd keep Wells if I had them.

Yeah that's actually not a bad idea. Once my IRA gets big enough (my 401k is way fatter) I plan to toss it around to all of the brokerage firms to get their $500+ bonus.

The only problem I have with your strategy is that they can change those damn card bonuses at any time. Could be tomorrow, could be in 10 years.

 

[Fenixgoon]

And yet WF had a pre tax, pre provision profit of 29B in 2017. Somehow costs are rising and too high. Does this not make sense to anyone else?

 

[UglyCasanova]

It’s a shame for those people. I have no love for WF though.

 

[trenchfoot]

"I've moved over to a local credit union and am about to remove all of my funds from Wells Fargo"

Did the same thing maybe 6 or so years ago. Better rates and customer service. Wish more people would use credit Unions and make banks competitive again.

Also did this myself years back. One of the reasons I did so was when my first wife passed away, I needed a loan to cover the cost of legal fees and her debts related to her passing. I went to the bank I had my primary account at and got turned down due to the business debts she left behind. Went to a couple more of the bigger banks and also got turned away. Finally went to a credit union a friend of mine recommended and there you go, got a short term loan at a favorable rate easy peasy.

Thereafter, whatever insurance proceeds (six figures) and other residuals were left after clearing her debts went straight to this credit union before making investments from the account, along with closing my account at the bank I used to patronize for over 30+ years and never looked back.

A favor given was returned in kind.

 

[Zorba]

I've always used the bank that benefits me the most. For a long time that was Ally but now it's actually BofA just because of their preferred rewards. I'm in love /w my card giving me 2.625% on everything and 3.5% on travel and dining.... I really can't beat that. I still keep savings elsewhere, but at least moved my vanguard IRA to Merrill to get that bonus. Still the vanguard fund, so what do I care.

But I doubt i'd keep Wells if I had them.

Which BoA card is that?

 

[Thump553]

Well fortunately the CEO of Wells Fargo that organized and pushed their "eight is great" customer account scheme was able to walk away with $130,000,000 when he was shown the door. What heppens to the peons isn't really significant-they are losers, not winners, in Trumplandia.

 

[shortylickens]

More of that booming economy Trump gave to us out of the goodness of his heart.

 

[s0me0nesmind1]

Well fortunately the CEO of Wells Fargo that organized and pushed their "eight is great" customer account scheme was able to walk away with $130,000,000 when he was shown the door. What heppens to the peons isn't really significant-they are losers, not winners, in Trumplandia.

The problem with situations like that - much like the mortgage crisis - is that there is a lack of accountability.

Obama inherited the mortgage crisis that occurred under Bush. He had 8 years to find accountability through thorough investigation and prosecute people on all sides - everywhere from banks accepting loans that are far too risky, insurance companies accepting those loans to insure, circumventing reporting, the list goes on and on.

Guess what he chose? Nothing. Bail them out. No prosecutions. No fines. No repercussions. What does that tell businesses? It's worth it to take these risks, because no one will hold us accountable in the end. People should have been in prison. Companies and individual people should have been fined amounts that totaled BILLIONS.

I'm not blaming Obama for this system we have - that is just the most recent biggest example.

Just like in this case with Wells Fargo, people should have been fined to the point where there was DEEP REGRET - including individuals in addition to the company. In the end though, Wells Fargo would do it again and again and again - because overall all their actions equaled a net positive.

 

[Vic]

The problem with situations like that - much like the mortgage crisis - is that there is a lack of accountability.

Obama inherited the mortgage crisis that occurred under Bush. He had 8 years to find accountability through thorough investigation and prosecute people on all sides - everywhere from banks accepting loans that are far too risky, insurance companies accepting those loans to insure, circumventing reporting, the list goes on and on.

Guess what he chose? Nothing. Bail them out. No prosecutions. No fines. No repercussions. What does that tell businesses? It's worth it to take these risks, because no one will hold us accountable in the end. People should have been in prison. Companies and individual people should have been fined amounts that totaled BILLIONS.

I'm not blaming Obama for this system we have - that is just the most recent biggest example.

Just like in this case with Wells Fargo, people should have been fined to the point where there was DEEP REGRET - including individuals in addition to the company. In the end though, Wells Fargo would do it again and again and again - because overall all their actions equaled a net positive.

Do you live in an alternate reality or something? Those mortgage lenders, banks, insurance companies and Wall Street players involved in the housing bust (those who survived) have since paid hundreds of billions of dollars in fines.
No repercussions? More than a thousand banks and mortgage companies went under and more than a million people lost their jobs.
No regret? When Trump got elected, he proposed repealing the ATR (ability to repay) provision in Dodd-Frank. You know who objected the strongest? The banks.
And it's funny you bring up the mortgage crisis in this thread. Because do you happen to know who was the only major bank to not have a solvency crisis during that time, because they had never loosened their underwriting standards during the boom? They're in the thread title.

 

[Darwin333]

Wait, so all of these scandals weren't enough to make you leave:

Beyond opening as many as 3.5 million unauthorized bank and credit card accounts, Wells Fargo has admitted to charging customers for mortgage fees they didn't deserve and forcing them into car insurance they didn't need. Some people even had their cars repossessed as a result.

More recently, Wells Fargo started refunding customers who were charged for pet insurance and other products they didn't fully understand. It set aside $285 million to refund foreign-exchange and wealth-management clients for incorrect pricing and fees.

And the bank discovered that some workers altered documents about business customers — a finding that reportedly sparked a Justice Department investigation. (The department declined to comment.)

Worse, in early August, Wells Fargo said it was "very sorry" for a computer glitch that caused hundreds of people to have their homes foreclosed on.

But voluntarily cutting roughly as many of their jobs as they HAD to fire for opening millions of fake accounts in 2016 put you over the edge?

 

[Darwin333]

Do you live in an alternate reality or something? Those mortgage lenders, banks, insurance companies and Wall Street players involved in the housing bust (those who survived) have since paid hundreds of billions of dollars in fines.
No repercussions? More than a thousand banks and mortgage companies went under and more than a million people lost their jobs.
No regret? When Trump got elected, he proposed repealing the ATR (ability to repay) provision in Dodd-Frank. You know who objected the strongest? The banks.
And it's funny you bring up the mortgage crisis in this thread. Because do you happen to know who was the only major bank to not have a solvency crisis during that time, because they had never loosened their underwriting standards during the boom? They're in the thread title.

How many got steel bracelets slapped on and sent to the pokey for committing black letter crimes?

 

[Vic]

How many got steel bracelets slapped on and sent to the pokey for committing black letter crimes?

In almost all cases, the 'toxic' mortgages made during the housing boom/bust were legal when they were made.
Plus the banks weren't the real culprits of the housing boom/bust. The banks would never have made those bad loans if Wall Street hadn't be eagerly buying up all that paper. Nor would the housing bust have been as severe if people who could afford their mortgage payments hadn't stopped making them because they somehow (supposedly) believed the housing market would never recover. And all those tens of thousands of people who got hundreds of billions in debt forgiveness because they were underwater are not/would not be underwater today, less than 10 years later.
Should any of those people get steel bracelets as well?

 

[UNCjigga]

But but but...tax cuts?

 

[Greenman]

I canned Wells 4 or 5 years back. I got tired of being treated like a Nigerian scammer every time I deposited a check.