Thinking, based on past transgressions, the regulatory pressures are the primary issue.....
Yes, you are correct. Having done a short stint at Wells Fargo. Charlie (the new CEO) who took over after the scandals of up to a decade ago truly and without question slowly but surely got the company under control.
We have to remember they are a massive company and it takes time to correct a massive ship. He did that, I like the guy, he was relentless promoting do what is right for the customer, all kinds of safe guards to report any type of abuse ect. Thousands of employees were fired over this.
Well, let me say something about politicians and the Senate/House banking committee as well as a well known House member Maxine Waters. (no politics here) Just describing the unrelenting political climate that Wells Fargo was baring all on its own was also reported in the media with the named person above.
Anyway, Charlie can never do right, it got to the point where the committee was even telling WF to remove a board member as he struggled to comply with all their wishes and the FED in order to get the 2 trillion dollar asset cap removed that was placed on them for past mis-deeds.
SO more and more they started shifting and selling less profitable business away in order to grow the more profitable while operating under the 2 trillion asset cap.
Being such a huge company, there will always be a misdeed on a more local level and the committee just seems to stay laser focused on WF, every mis step they are under attack while many others fly under the radar. Well good for him, he just stuck his nose up at them again. Keep restricting WF, lets someone else deal with it. He in so many words diplomatically said this in his statement if you read it. The leading mortgage companies do not go under the scrutiny that they put WF under because I feel big banks make big headlines for the Banking Committee not companies like Rocket Mortgage. The average voter would go who? or shrug their shoulders.
It's why the other big banks have also notched down the home mortgage business, as anything they do and are attacked as ignoring a certain segment of the population ect... it's a big headache.
(Have no idea why I am typing all this, kind of passionate about the subject but lets not comment about politics and I have limited myself in that scope, it has been a while since I updated myself on WF but I believe they still have the asset cap in place and they have been expecting it to be removed a long time now)I jsut sold my WF in my Roth but I do have a significant holding (for me anyway) in my WF 401k which is very positive right now and was going to get rid of that this year maybe as well. Rolling the dice as earnings coming out Friday I think.
hit and their business soared. Now that has settled back to normal.
