Author Topic: WFC - Wells Fargo  (Read 546083 times)

John Hjorth

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Re: WFC - Wells Fargo
« Reply #1130 on: December 24, 2019, 09:24:26 AM »
Off topic :

oakwood,

Here, a belated welcome to you here on CoBF & Merry Christmas. -Please don't be a stranger.

- - - o 0 o - - -

-Now back to WFC.
In the race of excellence there is no finish line.
-HH Sheikh Mohammed Bin Rashid Al Maktoum, Vice President and Prime Minister of the United Arab Emirates and Ruler of Dubai


oakwood42

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Re: WFC - Wells Fargo
« Reply #1131 on: December 24, 2019, 10:42:28 AM »
Off topic :

oakwood,

Here, a belated welcome to you here on CoBF & Merry Christmas. -Please don't be a stranger.

- - - o 0 o - - -

-Now back to WFC.

Thank you John - I am continuing to work my way through the WFC thread!

DooDiligence

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Re: WFC - Wells Fargo
« Reply #1132 on: December 26, 2019, 11:26:28 PM »
Why does WFC own rail cars?

www.wellsfargo.com/com/financing/equipment-financing/rail/

Maybe its a good thing.

Theyve got so much cash that they have to use trains to move it around?

 ???
AFL // BRK.B // CLB an incredibly stupid move // EW // GPC // MO an incredibly stupid ex-CEO // MTB // NVO // PSX // TRMD // ULTA // VDE // VLGEA // WFC

Investable cash 16% + 18 months of survival $

Rasputin

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Re: WFC - Wells Fargo
« Reply #1133 on: December 27, 2019, 06:09:42 AM »
check out this presentation

https://www08.wellsfargomedia.com/assets/pdf/about/investor-relations/presentations/2016/wholesale-banking-presentation.pdf  (scroll down to page 29, to see the GE Capital + Railcar deal)

The wsj article misses a big point: To WFC, the value of the railcar leasing division is not just the financing+lease income, it's the other services that the customers use. 

DooDiligence

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Re: WFC - Wells Fargo
« Reply #1134 on: December 27, 2019, 06:54:13 AM »
check out this presentation

https://www08.wellsfargomedia.com/assets/pdf/about/investor-relations/presentations/2016/wholesale-banking-presentation.pdf  (scroll down to page 29, to see the GE Capital + Railcar deal)

The wsj article misses a big point: To WFC, the value of the railcar leasing division is not just the financing+lease income, it's the other services that the customers use.

Nice link, thanks.

So Marmon actually owns the rail cars?
(see page 34 footnote 1)
AFL // BRK.B // CLB an incredibly stupid move // EW // GPC // MO an incredibly stupid ex-CEO // MTB // NVO // PSX // TRMD // ULTA // VDE // VLGEA // WFC

Investable cash 16% + 18 months of survival $

Cigarbutt

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Re: WFC - Wells Fargo
« Reply #1135 on: December 27, 2019, 07:19:32 AM »
^The last time I checked, 2/3 of railcars were leased, not owned. This could be seen as a non-traditional venture with a rogue GE label but if you believe in the future of prosperity with rails in it, the operating segment may just be a variation for the historical path-dependent outcome related to client satisfaction (and accounting reporting needs) where simple lending of money with railcars as collateral became an off-balance sheet decision. BTW and FWIW, the accounting has changed recently for the reporting subtility of who owns what vs capital/operating reporting decisions with the "right-of-use" liability terminology introduced in 2019. I agree with Rasputin here and I think that WFC's job is to keep the client happy and to continue to offer their services doing so, wherever the accounting terminology takes them as the substance of the intermediation transactions doesn't really change.

WFC's history and, in fact, its origin, is strongly tied to where people moved and how merchandise (including money or its gold equivalent) was handled. The next time you go to LA, take 10 minutes to visit their small museum which helps to remember how WFC really connected with people and helped people connect with each other before the advance of the digital age, with the advent of the ATM as a major accomplishment. A synonym for stagecoach is diligence. :)
https://www.history.com/this-day-in-history/wells-and-fargo-start-shipping-and-banking-company
https://www.atlasobscura.com/places/wells-fargo-history-museum-los-angeles

DooDiligence

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Re: WFC - Wells Fargo
« Reply #1136 on: December 27, 2019, 07:32:03 AM »
^The last time I checked, 2/3 of railcars were leased, not owned. This could be seen as a non-traditional venture with a rogue GE label but if you believe in the future of prosperity with rails in it, the operating segment may just be a variation for the historical path-dependent outcome related to client satisfaction (and accounting reporting needs) where simple lending of money with railcars as collateral became an off-balance sheet decision. BTW and FWIW, the accounting has changed recently for the reporting subtility of who owns what vs capital/operating reporting decisions with the "right-of-use" liability terminology introduced in 2019. I agree with Rasputin here and I think that WFC's job is to keep the client happy and to continue to offer their services doing so, wherever the accounting terminology takes them as the substance of the intermediation transactions doesn't really change.

WFC's history and, in fact, its origin, is strongly tied to where people moved and how merchandise (including money or its gold equivalent) was handled. The next time you go to LA, take 10 minutes to visit their small museum which helps to remember how WFC really connected with people and helped people connect with each other before the advance of the digital age, with the advent of the ATM as a major accomplishment. A synonym for stagecoach is diligence. :)
https://www.history.com/this-day-in-history/wells-and-fargo-start-shipping-and-banking-company
https://www.atlasobscura.com/places/wells-fargo-history-museum-los-angeles

Is the asset cap more about this end of the business than the phony account scandal?

www.spglobal.com/marketintelligence/en/news-insights/trending/bupd-tis_qk8gzldv4vvgq2

---

It seems like WFC not being able to do any big deals could maybe send something to Omaha,
which would speak to the need for BRK to stay below the 10% ownership limit, or would it be
better for WEB to just buy the whole thing & deal with the requirements?

Business Wire seems like a fertile hunting ground for BRK businesses too?

---

I just bought Nate's banking book as I should've a long time ago.

www.amazon.com/Bank-Investors-Handbook-Nathan-Tobik/dp/0692990208
« Last Edit: December 27, 2019, 07:36:43 AM by DooDiligence »
AFL // BRK.B // CLB an incredibly stupid move // EW // GPC // MO an incredibly stupid ex-CEO // MTB // NVO // PSX // TRMD // ULTA // VDE // VLGEA // WFC

Investable cash 16% + 18 months of survival $

sleepydragon

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Re: WFC - Wells Fargo
« Reply #1137 on: December 27, 2019, 07:53:09 AM »
^The last time I checked, 2/3 of railcars were leased, not owned. This could be seen as a non-traditional venture with a rogue GE label but if you believe in the future of prosperity with rails in it, the operating segment may just be a variation for the historical path-dependent outcome related to client satisfaction (and accounting reporting needs) where simple lending of money with railcars as collateral became an off-balance sheet decision. BTW and FWIW, the accounting has changed recently for the reporting subtility of who owns what vs capital/operating reporting decisions with the "right-of-use" liability terminology introduced in 2019. I agree with Rasputin here and I think that WFC's job is to keep the client happy and to continue to offer their services doing so, wherever the accounting terminology takes them as the substance of the intermediation transactions doesn't really change.

WFC's history and, in fact, its origin, is strongly tied to where people moved and how merchandise (including money or its gold equivalent) was handled. The next time you go to LA, take 10 minutes to visit their small museum which helps to remember how WFC really connected with people and helped people connect with each other before the advance of the digital age, with the advent of the ATM as a major accomplishment. A synonym for stagecoach is diligence. :)
https://www.history.com/this-day-in-history/wells-and-fargo-start-shipping-and-banking-company
https://www.atlasobscura.com/places/wells-fargo-history-museum-los-angeles

Is the asset cap more about this end of the business than the phony account scandal?

www.spglobal.com/marketintelligence/en/news-insights/trending/bupd-tis_qk8gzldv4vvgq2

---

It seems like WFC not being able to do any big deals could maybe send something to Omaha,
which would speak to the need for BRK to stay below the 10% ownership limit, or would it be
better for WEB to just buy the whole thing & deal with the requirements?

Business Wire seems like a fertile hunting ground for BRK businesses too?

---

I just bought Nate's banking book as I should've a long time ago.

www.amazon.com/Bank-Investors-Handbook-Nathan-Tobik/dp/0692990208

Just ordered the book too. Thanks :)


Schwab711

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Re: WFC - Wells Fargo
« Reply #1139 on: January 14, 2020, 06:42:39 AM »
https://www.wsj.com/articles/we-need-to-be-a-technology-company-wells-fargo-struggles-with-aging-systems-11578738600

WFC would've had a pass from investors if they had depressed earnings to invest in better controls 2 years ago. Equity:Assets ratio fell below 10% for the first time since 2009. I think investors are underestimating how devastating the asset cap is to a bank. Thankfully inflation isn't higher, but it seems like WFC is making a lots of little bad decisions to pretend they are a normal bank at the moment.