Author Topic: WFC - Wells Fargo  (Read 331712 times)

sleepydragon

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Re: WFC - Wells Fargo
« Reply #1050 on: July 08, 2019, 07:16:31 AM »
When I was in high school, I worked at a restaurant. Each day at the end of the day, the boss would give me a bag full of cash and I would walk to a bank to deposit the money. Itís usually a few thousand dollars. I would go to a special window and the teller is always very warm and extra friendly.
 I guess thatís one example of that branches will not go away?


WayWardCloud

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Re: WFC - Wells Fargo
« Reply #1051 on: July 08, 2019, 01:02:46 PM »
When I was in high school, I worked at a restaurant. Each day at the end of the day, the boss would give me a bag full of cash and I would walk to a bank to deposit the money. It’s usually a few thousand dollars. I would go to a special window and the teller is always very warm and extra friendly.
 I guess that’s one example of that branches will not go away?

I have a big jar of coins at home in which I empty the change out of my pockets. Every two years or so the jar gets full and I go to the Bank of America branch down the street. The teller is neither warm nor friendly, they are on the other side of a protective glass window and I can never hear what they say. I'm tall so I have to awkwardly bend the whole time so my ear is near the level of the microphone thingy. It feels like I'm mildly bothering them, like I'm at the DMV except the wait is 10 minutes instead of 5 hours. The branch is huge for no reason: there are about 15 windows but only 2-4 are ever in use, plus 4-5 office space with glass walls to receive clients, 1 or 2 are actually in use, very high ceilings, a long line of customers waiting patiently on their feet, often elderly or young parents dealing with restless children, nobody to greet them, orient them, no coffee, no bathroom, no area for the children to play, even strikingly hardly any seats. They put all my coins in a transparent bag and ship it to some mysterious remote coin counting center. It takes 2 to 3 (!) months but eventually I get the amount credited to my account (I have to trust the number is correct). They don't even tell me it's been credited, I just eventually find out some day when I check my balance. I also have to assume that's what it is because the description on the line item is some technical mambo jumbo of letters and numbers which I'm sure makes sense to THEM but not to me, the customer...

The punch line of the story is this: The last time I walked in holding my little jar they told me they don't do that anymore (handling money, a bank...). So I googled it, went to a nearby CVS and used their coin counting machine. There was no line, it took only a couple minutes and I got my money immediately. Since I was already there I bought sunscreen and insect repellent  ;)
« Last Edit: July 08, 2019, 01:05:58 PM by WayWardCloud »

undervalued

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Re: WFC - Wells Fargo
« Reply #1052 on: July 08, 2019, 01:57:06 PM »
When I was in high school, I worked at a restaurant. Each day at the end of the day, the boss would give me a bag full of cash and I would walk to a bank to deposit the money. Itís usually a few thousand dollars. I would go to a special window and the teller is always very warm and extra friendly.
 I guess thatís one example of that branches will not go away?

I have a big jar of coins at home in which I empty the change out of my pockets. Every two years or so the jar gets full and I go to the Bank of America branch down the street. The teller is neither warm nor friendly, they are on the other side of a protective glass window and I can never hear what they say. I'm tall so I have to awkwardly bend the whole time so my ear is near the level of the microphone thingy. It feels like I'm mildly bothering them, like I'm at the DMV except the wait is 10 minutes instead of 5 hours. The branch is huge for no reason: there are about 15 windows but only 2-4 are ever in use, plus 4-5 office space with glass walls to receive clients, 1 or 2 are actually in use, very high ceilings, a long line of customers waiting patiently on their feet, often elderly or young parents dealing with restless children, nobody to greet them, orient them, no coffee, no bathroom, no area for the children to play, even strikingly hardly any seats. They put all my coins in a transparent bag and ship it to some mysterious remote coin counting center. It takes 2 to 3 (!) months but eventually I get the amount credited to my account (I have to trust the number is correct). They don't even tell me it's been credited, I just eventually find out some day when I check my balance. I also have to assume that's what it is because the description on the line item is some technical mambo jumbo of letters and numbers which I'm sure makes sense to THEM but not to me, the customer...

The punch line of the story is this: The last time I walked in holding my little jar they told me they don't do that anymore (handling money, a bank...). So I googled it, went to a nearby CVS and used their coin counting machine. There was no line, it took only a couple minutes and I got my money immediately. Since I was already there I bought sunscreen and insect repellent  ;)

One example is a bag full of cash, and the other is full of change. lol  ;D
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John Hjorth

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Re: WFC - Wells Fargo
« Reply #1053 on: July 08, 2019, 01:59:19 PM »
Sleepydragon,

How about cheques back then? -Did you have any of them to transport/process? [ : - ) ]
« Last Edit: July 08, 2019, 02:49:51 PM by John Hjorth »
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fareastwarriors

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Re: WFC - Wells Fargo
« Reply #1054 on: July 08, 2019, 04:24:29 PM »
When I was in high school, I worked at a restaurant. Each day at the end of the day, the boss would give me a bag full of cash and I would walk to a bank to deposit the money. Itís usually a few thousand dollars. I would go to a special window and the teller is always very warm and extra friendly.
 I guess thatís one example of that branches will not go away?

I have a big jar of coins at home in which I empty the change out of my pockets. Every two years or so the jar gets full and I go to the Bank of America branch down the street. The teller is neither warm nor friendly, they are on the other side of a protective glass window and I can never hear what they say. I'm tall so I have to awkwardly bend the whole time so my ear is near the level of the microphone thingy. It feels like I'm mildly bothering them, like I'm at the DMV except the wait is 10 minutes instead of 5 hours. The branch is huge for no reason: there are about 15 windows but only 2-4 are ever in use, plus 4-5 office space with glass walls to receive clients, 1 or 2 are actually in use, very high ceilings, a long line of customers waiting patiently on their feet, often elderly or young parents dealing with restless children, nobody to greet them, orient them, no coffee, no bathroom, no area for the children to play, even strikingly hardly any seats. They put all my coins in a transparent bag and ship it to some mysterious remote coin counting center. It takes 2 to 3 (!) months but eventually I get the amount credited to my account (I have to trust the number is correct). They don't even tell me it's been credited, I just eventually find out some day when I check my balance. I also have to assume that's what it is because the description on the line item is some technical mambo jumbo of letters and numbers which I'm sure makes sense to THEM but not to me, the customer...

The punch line of the story is this: The last time I walked in holding my little jar they told me they don't do that anymore (handling money, a bank...). So I googled it, went to a nearby CVS and used their coin counting machine. There was no line, it took only a couple minutes and I got my money immediately. Since I was already there I bought sunscreen and insect repellent  ;)

You didn't count and wrap your coins into rolls? No wonder they didn't like you.




WayWardCloud

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Re: WFC - Wells Fargo
« Reply #1055 on: July 08, 2019, 05:44:04 PM »
When I was in high school, I worked at a restaurant. Each day at the end of the day, the boss would give me a bag full of cash and I would walk to a bank to deposit the money. It’s usually a few thousand dollars. I would go to a special window and the teller is always very warm and extra friendly.
 I guess that’s one example of that branches will not go away?

I have a big jar of coins at home in which I empty the change out of my pockets. Every two years or so the jar gets full and I go to the Bank of America branch down the street. The teller is neither warm nor friendly, they are on the other side of a protective glass window and I can never hear what they say. I'm tall so I have to awkwardly bend the whole time so my ear is near the level of the microphone thingy. It feels like I'm mildly bothering them, like I'm at the DMV except the wait is 10 minutes instead of 5 hours. The branch is huge for no reason: there are about 15 windows but only 2-4 are ever in use, plus 4-5 office space with glass walls to receive clients, 1 or 2 are actually in use, very high ceilings, a long line of customers waiting patiently on their feet, often elderly or young parents dealing with restless children, nobody to greet them, orient them, no coffee, no bathroom, no area for the children to play, even strikingly hardly any seats. They put all my coins in a transparent bag and ship it to some mysterious remote coin counting center. It takes 2 to 3 (!) months but eventually I get the amount credited to my account (I have to trust the number is correct). They don't even tell me it's been credited, I just eventually find out some day when I check my balance. I also have to assume that's what it is because the description on the line item is some technical mambo jumbo of letters and numbers which I'm sure makes sense to THEM but not to me, the customer...

The punch line of the story is this: The last time I walked in holding my little jar they told me they don't do that anymore (handling money, a bank...). So I googled it, went to a nearby CVS and used their coin counting machine. There was no line, it took only a couple minutes and I got my money immediately. Since I was already there I bought sunscreen and insect repellent  ;)

You didn't count and wrap your coins into rolls? No wonder they didn't like you.

I guess that's one way to think of what the relationship should be like between a business and its customers.
Just sharing an amusing anecdote anyway, to each his own conclusions  :)

« Last Edit: July 08, 2019, 05:55:56 PM by WayWardCloud »

sleepydragon

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Re: WFC - Wells Fargo
« Reply #1056 on: July 08, 2019, 05:47:49 PM »
Sleepydragon,

How about cheques back then? -Did you have any of them to transport/process? [ : - ) ]

No, it was a restaurant.
Also I was a kid, so maybe nobody would think I carried so many cash on my way to the bank. Or maybe no one else wanted to do this.

fareastwarriors

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Re: WFC - Wells Fargo
« Reply #1057 on: July 08, 2019, 11:06:07 PM »
When I was in high school, I worked at a restaurant. Each day at the end of the day, the boss would give me a bag full of cash and I would walk to a bank to deposit the money. Itís usually a few thousand dollars. I would go to a special window and the teller is always very warm and extra friendly.
 I guess thatís one example of that branches will not go away?

I have a big jar of coins at home in which I empty the change out of my pockets. Every two years or so the jar gets full and I go to the Bank of America branch down the street. The teller is neither warm nor friendly, they are on the other side of a protective glass window and I can never hear what they say. I'm tall so I have to awkwardly bend the whole time so my ear is near the level of the microphone thingy. It feels like I'm mildly bothering them, like I'm at the DMV except the wait is 10 minutes instead of 5 hours. The branch is huge for no reason: there are about 15 windows but only 2-4 are ever in use, plus 4-5 office space with glass walls to receive clients, 1 or 2 are actually in use, very high ceilings, a long line of customers waiting patiently on their feet, often elderly or young parents dealing with restless children, nobody to greet them, orient them, no coffee, no bathroom, no area for the children to play, even strikingly hardly any seats. They put all my coins in a transparent bag and ship it to some mysterious remote coin counting center. It takes 2 to 3 (!) months but eventually I get the amount credited to my account (I have to trust the number is correct). They don't even tell me it's been credited, I just eventually find out some day when I check my balance. I also have to assume that's what it is because the description on the line item is some technical mambo jumbo of letters and numbers which I'm sure makes sense to THEM but not to me, the customer...

The punch line of the story is this: The last time I walked in holding my little jar they told me they don't do that anymore (handling money, a bank...). So I googled it, went to a nearby CVS and used their coin counting machine. There was no line, it took only a couple minutes and I got my money immediately. Since I was already there I bought sunscreen and insect repellent  ;)

You didn't count and wrap your coins into rolls? No wonder they didn't like you.

I guess that's one way to think of what the relationship should be like between a business and its customers.
Just sharing an amusing anecdote anyway, to each his own conclusions  :)

I know. I'm just having some fun.  :D

Spekulatius

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Re: WFC - Wells Fargo
« Reply #1058 on: July 10, 2019, 06:38:26 PM »

What happens if US interest environment continue its downward trend to follow Europe or Japan? 

BAC's NIM may trend down toward 1.5%, while WFC's NIM may trend down toward 1.8%.  If this happens instantaneously in 2020,ceteris parisbus, BAC's eps will be around $1.25, while WFC's eps will be around $1.4.  By following BAC's example past 8 years, past regulatory issues (remediation, fines, settlements, penalties), WFC's annual operating expenses will be roughly $5 B lower vs 2019, boosting WFC's eps to $2.29.  If this scenario happens over time while they are able to reduce shares outstanding, eps will be higher.  Further cost reductions are very likely through out the industry which I haven't taken into account.

20 times eps for these 100% distributable eps generated by these safe diversified large banks should be reasonable valuation in a negative 10 yr treasury rate environment. 

https://www.wsj.com/articles/bank-stocks-havent-priced-in-enough-bad-news-11562583780

https://www.wsj.com/articles/u-s-banks-rush-in-as-european-banks-stumble-11562591312?tesla=y&mod=article_inline

It is unlikely that WFC can distribute 100% of their earnings in this scenario.

1) in a revision, loan losses will shoot up, requiring reserve build. This will likely lead to GAAP losses.
2) after central banks lower rates to zero, it will take a long time for rates to come back. This also means at bank earnings wonít come back. lower ROE =lower multiples.

We are looking at a ~$20 stock in this scenario. Itís will basically look like an European bank.

Asset manager /brokers H SCHW, IBRK,AMTD) mostly live on NIM nowadays and will also get hit hard by lower interest rates. Companies will large pension funds like GE and IBM will see their liabilities growth (due to lower assumed returns) and will have to kick in a lot of cash to keep them funded. Better to buy something with moderate debt, which will be cheaper to fund going forward.
To be a realist, one has to believe in miracles.

RuleNumberOne

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Re: WFC - Wells Fargo
« Reply #1059 on: July 10, 2019, 08:13:15 PM »
Negative rates have not been proven to work yet. Bernanke and Greenspan have said they don't think it is useful. Bernanke says at some point people will simply hoard cash.

I am not sure how Denmark is forcing people to accept negative rate mortgage bonds. Or how the European Project is forcing people to buy negative rate sovereign debt. As soon as the rate goes negative, one might as well leave their money as cash? Cash is better than any negative rate bond? Unless you force pension funds, university endowments to buy bonds with their cash?

https://www.marketwatch.com/story/alan-greenspan-comes-out-against-using-negative-rates-2016-03-01
https://www.marketwatch.com/story/bernanke-says-fed-likely-to-add-negative-rates-to-recession-fighting-toolkit-2015-12-15

In Europe, it is probably part of the "whatever it takes" to keep Italy and Greece in the European Project. I haven't seen any explanation of how it benefits the economy.

Europe bond bubble will blow up eventually.
« Last Edit: July 10, 2019, 08:17:51 PM by RuleNumberOne »