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Um, why is WFC stock up 42 percent year-to-date, if everyone hates WFC?

Wells Fargo & Co. WFC, is discontinuing personal lines of credit and will shut down existing ones in the coming weeks, CNBC reported, citing customer letters it has reviewed. The product, which offers customers $3,000 to $100,000 in revolving credit lines, was originally pitched by the bank as a way to either consolidate higher-interest credit card debt or avoid overdraft fees on checking accounts. “Wells Fargo recently reviewed its product offerings and decided to discontinue offering new Personal and Portfolio line of credit accounts and close all existing accounts,” the bank said in the six-page letter, according to CNBC. The bank will now focus on credit cards and personal loans. The move, which comes after the Federal Reserve banned the bank from growing its balance sheet until it has addressed compliance issues, has angered some customers, coming with little notice, said CNBC. It cited one customer as saying he would switch banks after banking with Wells for more than 10 years. Wells shares were down 1.6% Thursday, but have gained 41.6% in the year to date, while the S&P 500 SPX, has gained 15%.

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18 Comments

  1. We hate them as customers because they fuck us over and shamelessly take profit in a heartless manner. We love the stock because they fuck over customers and shamelessly take profit in a heartless manner.

  2. That’s the past, how will it do in the future compared to other banks (all banks will do well as rates rise…) How will they do long term compared to the modern banks / Fintechs like SoFi? Wells Fargo has a poisoned corporate culture and is weighed down by legacy technology and branches. Their customers simply don’t like them and will switch over time. That’s doesn’t mean the stock can’t go up (especially short term with a lower PE) but with better investments long term why buy one of the worst ones out there – it has a low PE ratio for a reason compared to their peers. They could surprise and turn it around but that’s pretty hard to do at a company this size since they can’t compete for the best talent that’s going to the Fintechs out there.

  3. Discovered today that WF will not let us transfer any funds from our WF Business account to our non WF Business account. We can do the reverse transfer all day long. And we can transfer out to a person account, but not to our Chase business account. Called WF and the said that’s just how they have it set up to make it hard for businesses to move money out. 🙄🙄🙄

  4. Not everyone hates it as much as you think. Me personally, i understand why the account opening scandal had the perception of being “so bad” but if you really look at all the different scandals in the last 20 years, there were many many that were so much worse.

  5. They were depressed all of 2020 bc of Fed sanctions. The sanctions were lifted this year and they are modernizing their business model, like not doing personal LoC as you have eloquently copy/pasted here.

    Edit: a 1yr graph has them in lockstep with BAC… so maybe all commercials have been rallying this year. $SOFI 🚀🚀🚀

  6. “if everyone hates WFC?” you mean the retarded investors over at r/stocks and r/investing? i glance over there once in a while and it’s the most retarded-over simplified trash posts over and over again.

  7. I don’t like WFC ( for that matter any of big banks which rip off poor) but I love the stock of these banks and invest based on recommendations of the analysts

Food (literally) for thought: Proving ownership of an NFT to receive physical Taco Bell

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