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Reply #67: The government bought Wells Fargo stock [View All]

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Hansel Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Feb-03-09 07:08 PM
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67. The government bought Wells Fargo stock
Edited on Tue Feb-03-09 07:09 PM by Hansel
Wells Fargo did not want the "bail-out" money and none was "given" to them. They sold stock in exchange for $25 billion. The paperwork is on the government's website.

Yes they bought Wachovia, but they sold stock to do it and they save that bank and 10 of thousands of jobs in the process. Wells Fargo is not a company that is keen on layoffs and will only do so as a last resort. Severance packages are not based on rank in the company, they are based on years of service. The lowest level employee can get up to 18 months of pay depending on how long they have been there.

Wells Fargo is the most stable bank in America and is the only American bank rated in the top 10 for stability. It's stock has been rated AAA for years, although it got a minor downgrade because of Wachovia being such a crap bank. This is still not junk stock. The government will make their money back and then some. That is if these fact challenged stories stop getting media play.

Sub-prime loans are a minor part of Wells Fargo's mortgage portfolio even though it is one of the biggest mortgage companies in the U.S. They have bought bundled loans that included sub-prime loans, but they sell relatively few of them. That is why the company is still so strong.

As far as these junkets, they are offered to all of their top performing employees from tellers making $18,000 a year to their top sales people. Wells Fargo believes in rewarding their people for performance. Oh, shame on them.

I think the story is hyperbolic and I wouldn't put Wells Fargo in the same class as some of these other institutions. Arrogant is not a word I would use to describe Dick Kovacevich. He is well respected and regarded by most of the people who work at Wells Fargo. By the way, Dick Kovacevich is the board chairman, not the CEO. John Stumpf is the CEO and has been for a year. Wonder who has the ax to grind with Kovacevich because usually the CEO takes the heat for this stuff. There is something very fishy about this story. And I'm guessing it has to do with the former employee mentioned in it.
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