…and that would be that he’s too good for Wells Fargo, and he’s wasting his time trying to score a position with the firm. In sum, it’s not him, it’s you, a notion he expressed in an email circa 5AM on Sunday.
Sent: November 24, 2013 5:27 AM
To: [redacted at Wells Fargo]
Subject: Disregard My Application
Dear [redacted at Wells Fargo],
After thinking it over I would like to disregard my application I sent this past week out for recruitment for Wells Fargo securities. Looking at my resume again I realize I can do way way better than Wells Fargo and I don’t want to settle for less. Please don’t take it personally. Thanks for your time. I hope you have a great Thanksgiving holiday.
And the below went out circa 2AM this morning, just to emphasize the point. Read more »
A couple thousand employees have bid the company and its mascot (a stage coach) adieu. Read more »
Banks Not Exactly Living Up To Terms Of Mortgage Settlement No Reason To Think That Said Settlement Isn’t Working, Settlement Authors SayBy Jon Shazar
It seems that a few boutique mortgage lenders are playing a little fast and loose with the rules they agreed to follow when they agreed to pay $25 billion to get the government to leave them alone. Read more »
Reuters has a delightful story today about Wells Fargo’s merchant banking business, Norwest Equity Partners, which owns among other things the quite horribly named rifle maker Savage Sports. I can’t get too worked up about the likelihood that a fifty-year-old, smallish ($3.7bn), carefully managed, moderately gun-toting, otherwise wholesome private equity business will bring down the global financial system, but then I’m not Sheila Bair:
“Is that really what you want institutions that have safety net support doing? Is that an appropriate use for a government backstop?” she told Reuters.
I dunno, Sheila. Who is “you”? What do you want institutions doing? Something, right?
The point of the Reuters story is mainly that the Volcker Rule is expected to limit banks’ ability to invest in private equity funds, but that Norwest’s business is likely to be exempt because it runs only Wells’ own money. If you put bank money in a separate PE fund with outside investors it’s caught up in the Volcker Rule, but if you just make private-equity-type investments on your own it is not. This is no way to run a railroad: Read more »
Bank earnings season kicked off today with Wells Fargo’s announcement, and since I have nothing really to say about Wells Fargo earnings I figured the least I could do was put up some charts instead. Not on earnings – they’re up! net interest margin is down! on balance, gnash your teeth a little! – but on what Wells Fargo is doing with all the money it’s got.
This seems like a popular question to ponder, since it’s got rather a lot of money. So today brings the Journal‘s vividly headlined “Wads of Cash Squeeze Bank Margins”, and earlier we had Frank Partnoy and Jesse Eisinger’s attempt to find out where Wells is hiding all its fraud. The main thing is:
- Banks have lots of deposits because everybody’s scared of everything so they put their money in the bank.1
- Banks aren’t making lots of loans for some reason, with the reason ranging from “banks are a bunch of scumbags” to “you’re all a bunch of deadbeats.”
- So they have money left over.
- So they put it somewhere.
A natural question is “where is the somewhere?” and here is where Wells puts it:
That’s just various bits as a percentage of total deposits. You can see loans have decreased as a percentage of deposits since the crisis; other risky-type assets – trading assets and available-for-sale corporate and mortgage bonds, etc. – have increased a bit but not enough to make up for that drop: Read more »