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Wells Fargo employee to CEO: I need a raise
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2014 Oct 8, 6:39am 1,563 views 8 comments
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Should have let them fail.. Why the surprise? That's where the bailouts went, into the CEO's pocket. Granted, WF claimed they didn't need them and were forced to take em, one more reason to stop with the crony capitalist bailouts paid by the taxpayer.
Tenpoundbass
2014 Oct 8, 7:18am
Otes has got a great future as the companies new head chopper.
It probably comes with a $85K salary, so I'm sure he'll be fine calling nervous people into his office and break the bad news to them.
..."Um... Yeah... We're going to go a head on, and go another way with your position!"
tatupu70
2014 Oct 8, 9:31am
Should have let them fail.. Why the surprise? That's where the bailouts went, into the CEO's pocket. Granted, WF claimed they didn't need them and were forced to take em, one more reason to stop with the crony capitalist bailouts paid by the taxpayer
How does a loan go into someone's pocket? If that's true, then I assume the repayment of said loan is coming out of the CEO's pocket?
Should have let them fail.. Why the surprise? That's where the bailouts went, into the CEO's pocket. Granted, WF claimed they didn't need them and were forced to take em, one more reason to stop with the crony capitalist bailouts paid by the taxpayer
How does a loan go into someone's pocket? If that's true, then I assume the repayment of said loan is coming out of the CEO's pocket?
No it's not. The repayment comes from asset inflation which the banks will ride, plus the continuous ZIRP window. Meanwhile only people who have inflatable assets and the power to sell them at inflated prices will benefit or break even from this, while the rest pays for it via price inflation. In an economy gone batshit crony crazy where anything below 2% inflation is considered a "threat" that needs to be combated with more fiat cowbell, those who don't want to (conservative savers etc.) or can't chase those yields lose out.
tatupu70
2014 Oct 8, 9:46am
The repayment comes from asset inflation which the banks will ride,
So the bailout went to buying assets then and not into the CEO's pocket?
Regardless, it would be the fault of the bank's board of directors for giving the CEO a bonus or raise--not the bailout.
Wells Fargo has engaged in securities fraud, illegal money laundering, forgery and perjury (robosigning). Instead of having to borrow at an interest rate reflective of this criminal and risky behavior, the bank can borrow at very low rates, and mark up the cost of credit to Americans who have a better credit rating than Wells Fargo.
Wells Fargo is given the privilege to create money out of thin air, but apparently, does not have to behave in a legal and responsible manner for that privilege.
And as Joseph Stiglitz, and others, have said, any moron could pay back TARP if allowed to borrow at such low rates. And don't forget, incompetent Treasury Secretary Geithner said the criminal banks have an unlimited backstop.
So Americans are certainly subsidizing the Wells Fargo CEO's earnings. His company should be shut down, and responsible execs jailed for the above mentioned crimes.
Stiglitz: http://www.thenewamerican.com/economy/sectors/item/4330-tarp-bailout-payback-drop-in-the-bucket
“What we did is give zero rates to banks, they then lent at much higher interest rates; that's the recapitalization. That's the gift.†He estimated that the damage done to the economy by hidden distortions stemming from TARP is in the trillions of dollars."
zzyzzx
2014 Oct 9, 12:01am
As a former Wells Fargo employee, I find this article extra funny, and relevant since the raises there did suck.
tatupu70
2014 Oct 9, 2:10am
Instead of having to borrow at an interest rate reflective of this criminal and risky behavior, the bank can borrow at very low rates, and mark up the cost of credit to Americans who have a better credit rating than Wells Fargo.
So, what is that rate? I hear this argument a lot--rates should be higher, or rates are artificially low due to the Fed. My question is--what would rates be if no bailout were given. You think they'd be a lot higher now?
So Americans are certainly subsidizing the Wells Fargo CEO's earnings. His company should be shut down, and responsible execs jailed for the above mentioned crimes.
This one I have an especially hard time with. Bank savings rates are not set by the Fed. How is any American subsidizing Wells Fargo?
Further, banks can't just go to the Fed and say I'd like to borrow $x at the Fed Funds rate and loan them out. Those are overnight loans. And if you look at what is actually happening--foreign banks are the ones that are actually borrowing from the Fed.
Wells Fargo employee Tyrel Oates did what most of us would only dream of doing.
Oates wrote an email to the CEO of the company, John Stumpf, asking for more money. The email went out to the CEO and about 200,000 employees of Wells Fargo & Co. WFC, +2.09% reported the Charlotte Observer.
The Oregon-based employee asked the CEO distribute more profits to Wells Fargo employees, in the name of reducing income inequality. Oates went further and asked for a $10,000 raise for the approximately 263,500 employees at the firm.
“Show the rest of the United States, if not the world, that, yes, big corporations can have a heart other than philanthropic endeavors,†he said in the email, the newspaper reported.
In a statement, Wells Fargo said “We provide market competitive compensation that combines base pay with a broad array of benefits and career-development opportunities for team members.â€
Oates, who processes requests from customers seeking to stop debt-collection calls, has been working at Wells Fargo for nearly seven years and is paid $15 an hour plus overtime. His pay has gone up from $13 an hour when he started at the bank.
Wells Fargo’s CEO took a 15% pay cut last year and was paid $19.3 million in salary and bonus. Seven years ago, in 2008, Stumpf received total compensation of $13.8 million. That’s a 40% increase for the CEO, while Oates received a 15% increase in the same period.
The 30-year-old‘s bold–faced email highlights a bigger concern of rising income inequality in the nation. It speaks to two big issues: The growing disparity in income between the so-called haves and have-nots, and wage stagnation since the crisis.
Most Americans have received paltry pay increases in the last several years.
The latest Labor Department jobs report showed that, while hiring has steadily increased since the financial crisis, wage growth remained stagnant.
In 2011, the average income of the richest 10% in the U.S. was 14 times more than the poorest 10%, according to the Gini coefficient, a measure of income inequality, wrote Morgan Stanley economists in a recent report. The trend shows income inequality has been on the rise since the late 1960s.
The median household income in 2013 of $51,939 was not statistically different from 2012 at $51,759, according to the latest government data.
http://www.marketwatch.com/story/wells-fargo-employee-to-ceo-i-need-a-raise-2014-10-08?dist=afterbell