Author Topic: WFC - Wells Fargo  (Read 384421 times)

mjs111

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Re: WFC - Wells Fargo
« Reply #1120 on: September 27, 2019, 02:12:12 PM »
I liked him when he was the Visa CEO was sad to see him leave there. He presided over much of Visa's recent impressive business (and stock price) expansion.  Interestingly, he said he left Visa because he wanted to be closer to his family, who lived in New York, and Visa's corporate headquarters are in San Francisco. Wells Fargo's corporate headquarters are in San Francisco again. Maybe the last kid left for college.


Mike

He is NOT relocating to San Fran

Looks like you're right.  Quoted from The Wall Street Journal:

"He will tackle the challenge from afar. Mr. Scharf will remain in New York but told investors on a call Friday morning that he will make frequent trips to San Francisco, where Wells Fargo is based, and Charlotte, N.C., where many of its employees work."

link:
https://www.wsj.com/articles/wells-fargo-names-charles-scharf-president-ceo-11569583001?mod=hp_lead_pos4


gurpaul88

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Re: WFC - Wells Fargo
« Reply #1121 on: September 27, 2019, 02:37:58 PM »
He hasn't exactly been the greatest for BK. Lets see how he is able to navigate here.

CorpRaider

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Re: WFC - Wells Fargo
« Reply #1122 on: September 28, 2019, 05:33:48 AM »
I mean it is good he's from the Dimon tree.  But then again, so is Jes Staley at BCS (he was "heir apparent" even).  What were the BK annual reports like?  (I just sent away for the last one).  Watched some youtube interiews.  Seems like a smart, straight shooter. 
« Last Edit: September 28, 2019, 05:46:46 AM by CorpRaider »

sleepydragon

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Re: WFC - Wells Fargo
« Reply #1123 on: September 28, 2019, 05:49:49 AM »
He hasn't exactly been the greatest for BK. Lets see how he is able to navigate here.

Bk was a much tougher business. The low interest rate make profits thin and they got some powerful big clients who are always shopping for the lowest cost providers. WFC is a much better business. Charles is giving up his stocks in BK and exchanging them into WFC. I switched all my BK into WFC in Dec last year.

frank87

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Re: WFC - Wells Fargo
« Reply #1124 on: September 28, 2019, 05:06:17 PM »
He hasn't exactly been the greatest for BK. Lets see how he is able to navigate here.

Bk was a much tougher business. The low interest rate make profits thin and they got some powerful big clients who are always shopping for the lowest cost providers. WFC is a much better business. Charles is giving up his stocks in BK and exchanging them into WFC. I switched all my BK into WFC in Dec last year.

It's interesting because the custody business should have all the hallmarks of a great business - huge scale needed to compete cost effectively, only a few players able to operate at huge scale, high retention - and yet, the custody banks routinely compete on price, thereby eroding margins. Nonetheless, BNY still earns 20% returns on tangible equity.

sleepydragon

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Re: WFC - Wells Fargo
« Reply #1125 on: September 28, 2019, 07:05:51 PM »
He hasn't exactly been the greatest for BK. Lets see how he is able to navigate here.

Bk was a much tougher business. The low interest rate make profits thin and they got some powerful big clients who are always shopping for the lowest cost providers. WFC is a much better business. Charles is giving up his stocks in BK and exchanging them into WFC. I switched all my BK into WFC in Dec last year.


It's interesting because the custody business should have all the hallmarks of a great business - huge scale needed to compete cost effectively, only a few players able to operate at huge scale, high retention - and yet, the custody banks routinely compete on price, thereby eroding margins. Nonetheless, BNY still earns 20% returns on tangible equity.

I feel they are being hurt by the passive trend too. When there was a lot of hedge funds, they have some pricing powers. But nowadays more and more those closing down and big clients like blackrock are aggressive bargainers. They also canít do anything with those cash parked with them, other than making a tiny spread on interest rate ó unlike WFC making 3+% loans to consumers and companies.

Spekulatius

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Re: WFC - Wells Fargo
« Reply #1126 on: September 29, 2019, 11:20:19 AM »
He hasn't exactly been the greatest for BK. Lets see how he is able to navigate here.

Bk was a much tougher business. The low interest rate make profits thin and they got some powerful big clients who are always shopping for the lowest cost providers. WFC is a much better business. Charles is giving up his stocks in BK and exchanging them into WFC. I switched all my BK into WFC in Dec last year.

It's interesting because the custody business should have all the hallmarks of a great business - huge scale needed to compete cost effectively, only a few players able to operate at huge scale, high retention - and yet, the custody banks routinely compete on price, thereby eroding margins. Nonetheless, BNY still earns 20% returns on tangible equity.

Custodian banks went from being a great business, to merely being a good business. Apparently a lot of money can be lost investing in companies like that (or at least one can underperform).
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