Bailed-out Wells Fargo plans lavish corporate getaway to Vegas.
Bailed-out Wells Fargo plans lavish corporate getaway to Vegas.
Wells Fargo, “once among the nation’s top writers of subprime mortgages,” has received approximately $25 billion in taxpayer money from the federal bailout. While other bailed-out firms — such as AIG — have canceled expensive junkets, the AP reports that Wells Fargo is sticking with them:
Wells Fargo…has booked 12 nights at the Wynn Las Vegas and its sister hotel, the Encore Las Vegas beginning Friday, said Wynn spokeswoman Michelle Loosbrock. The hotels will host the annual conference for company’s top mortgage officers.
The conference is a Wells Fargo tradition. Previous years have included all-expense-paid helicopter rides, wine tasting, horseback riding in Puerto Rico and a private Jimmy Buffett concert in the Bahamas for more than 1,000 employees and guests. [...]
“Recognition events are still part of our culture,” spokeswoman Melissa Murray said. “It’s really important that our team members are still valued and recognized.”
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Tone deaf, tin eared greedheads….I wonder what the average salary of these 1000 employees are? I will bet they are not tellers…
February 3rd, 2009 at 5:35 pmI’m curious about something. How many people here do their banking with these big banks that are getting bailout money and pulling stunts like this. And if you are, why haven’t you taken your assets and put them into either a Credit Union or a local bank that is just that, a bank and not a casino like these big banks have become?
February 3rd, 2009 at 5:38 pmOur regional large banking corporation held their big motivational conference, for its entire management (several hundred) last weekend, here in town. They didn’t spend millions, nor hundreds of thousands; but then again, they are solvent and are not asking for TARP funds. Go figure.
February 3rd, 2009 at 5:39 pmIt sickens me that I was just asked if I wanted to interview with them for a job in their mortgage dept. I will take my chances elsewhere.
February 3rd, 2009 at 5:40 pmIf this was anyone other than Wells Fargo I would have a problem with it, but since it is them I can’t. They did not want the bailout many to begin with and they were forced to take it. They also did post a profit for 2008. Fargo had very little control over whether or not they got the money.
February 3rd, 2009 at 5:40 pmAhh sorry for the misspelling. I hate proof reading.
February 3rd, 2009 at 5:42 pmWell you know…recognition events and bonuses were traditionally part of the culture here at my firm, until this year. This year we’ve gotten a freeze in wages, no bonus and no 401k matching – and guess what – we’re surviving without all of it. At least we have our jobs. What alternate reality are these folks living in?
February 3rd, 2009 at 5:42 pmTXProgressive Says:
Well you know…recognition events and bonuses were traditionally part of the culture here at my firm, until this year. This year we’ve gotten a freeze in wages, no bonus and no 401k matching – and guess what – we’re surviving without all of it. At least we have our jobs. What alternate reality are these folks living in?
Apparently, there are any number of rival companies out there thriving and ready to snap up any disaffected employees who didn’t get a bonus or a junket. That at least was the argument about the grotesque Wall Street bonuses — “if we don’t give them bonuses they’ll go somewhere else.” So if your company performs badly while another similar company performs well, the American taxpayer should make up the difference?
Or is that just a really stupid and bogus excuse for playing with someone else’s money?
February 3rd, 2009 at 5:48 pmThose team members (of which I was a member for many years here in San Diego) get paid rather well to do their jobs. Not much need – except for greed – for additional compensation. And certainly if they had done their jobs well, maybe the taxpayers would not have to bail them out.
In the world I reside, failing in business is not rewarded.
February 3rd, 2009 at 5:50 pmWell, i can see how these assclown deserve a vacation. they’ve worked so hard…destroying our economy. meanwhile, here in connecticut, they’re laying off teachers.
February 3rd, 2009 at 5:50 pmWells Fargo has been doing quite well. Not sure why they got bailout money…
February 3rd, 2009 at 5:50 pmThere are times when the audacity of these people is simply so great, so all-encompassing and enormous that I can’t even manage to get angry because no amount of anger could ever possibly be enough. This is one of those times.
February 3rd, 2009 at 5:52 pm666lattes Says:
Wells Fargo has been doing quite well. Not sure why they got bailout money…
Have you sen the application for TARP funds? It is a very small application – basically a questionaire asking who owns the bank and other insignificant questions. None of the questions I found even asked why they thought the bank needed bail out money. It seems if you ask for it, you get it.
February 3rd, 2009 at 5:53 pmAs a long time Wells Fargo customer, I’m really PISSED!
February 3rd, 2009 at 5:53 pmRecognition events? Please – they only do this for the suits – the people who do the hard work never get recognition. I worked for an insurance company who sent everyone to a fancy dinner with brokers, except the secretaries. And told us not to mention it to any of them. I told our dep’t secretary right away; she raised hell and the bosses caught it from the bigger bosses.
That’s corporate america, folks, a hierarchy of the unworthy.
February 3rd, 2009 at 5:54 pmI knew an attorney that worked for the government case against the crooked S & L bailouts. He said that each day, for lunch, they bankers/fraudsters would have a luxurious meal brought in and made a point of throwing these excesses in the face of the prosecutors – they would taunt the government attorneys, asking them if they wanted a bite of their splendid feast.
To this criminal cabal, and make no mistake about it – this is the “base” that dur chimpfurher was addressing in Michael Moore’s film, lootin’ isn’t any fun if they can’t rub our noses into it too.
Yes, we can be outraged – but they know they will get what they want anyhow.
That’s the whole point.
February 3rd, 2009 at 5:55 pmFine, have the event. Mr. Geitner will be calling to inform you that your $25 billion credit line has been cancelled. Very simple.
February 3rd, 2009 at 5:56 pmAre they partying with the money that was supposed to keep our economy from ‘falling off a cliff’, or are they partying with the money they extorted by screaming that our economy would fall off a cliff if they didn’t get the bailout? I gotta clean out the garage. See if I can find that guillotine.
February 3rd, 2009 at 5:59 pmHow very, very *nice* for them!
NOT.
February 3rd, 2009 at 6:01 pmStratRat Says:
“Have you sen the application for TARP funds?”
Rachel Maddow had a copy of the application a little while ago. I think I remember that it was only 2 pages and asked pretty generic questions.
It’s stupifying how much harder it would be to qualify for a credit card, or apply for a job at McDonalds, or Food Stamps for that matter, than to qualify for Billions of Dollars of TARP funds.
February 3rd, 2009 at 6:03 pmI’d like to be valued and recognized for my tax dollars going into their pockets.
February 3rd, 2009 at 6:08 pmWhat you all seem to miss, is the fact that this could be regarded as an economically stimulative event. The gay sex trade in LV has been hit especially hard. Wells should be commended for doing their part to bolster the local economy.
You forget that in Nevada, hookers pay taxes, and they help support the state’s economy.
February 3rd, 2009 at 6:12 pmI am livid over crappy, money-losing, wealth-destroying people and their insolvent companies giving themselves bonuses and parties to celebrate their failures.
But.
While this move is bad PR, Wells Fargo wasn’t in the Sub-Prime loan market. Don’t fall for shoddy reporting…the numbers speak for themselves.
Wells Fargo was forced by the US Treasury to take the TARP Funds and they were very vocal about not needing, not wanting and not planning to kowtow to rules set up for the insolvent banks.
And as we saw just this week their business in 2008 was pretty damn good (and in light of what the rest of the financial world saw–amazing).
February 3rd, 2009 at 6:13 pmBull shit!
February 3rd, 2009 at 6:14 pmStav:
Wells Fargo was forced by the US Treasury to take the TARP Funds and they were very vocal about not needing, not wanting and not planning to kowtow to rules set up for the insolvent banks.
So, they could have bought WAMU outright?
Proof?
February 3rd, 2009 at 6:17 pm“Recognition events are still part of our culture,” spokeswoman Melissa Murray said.
And ours as well. Count on being very well recognized next time you ask for a tax-payer funded hand-out. The answer damn well better be NO!
Greed cannot be cured by the government, but putting greedy companies who want money from We the People out of business can.
PEACE
February 3rd, 2009 at 6:18 pmMs Murray,
Didn’t you get the telegram. The good ole days are gone. Over. Done.
How many more banks do you think are going to be able to play this game before someone is slapped into tomorrow.
You’d best reel in your cowboys. Tell them to take the money they were planning to spend on the ye-hahs and contribute it (ALL of it) to the food bank.
Your execs should load the money in their cars to take it down–then donate the cars to.
After that, if donations continue hot and heavy, we may let your organization survive.
The American People are NOT kidding any more.
February 3rd, 2009 at 6:19 pmWells Fargo transation: “Talk to the hand. Then give it your money.”
February 3rd, 2009 at 6:24 pmbarfly Says:
“So, they could have bought WAMU outright?”
Maybe that’s what it was, then… given more to help out WAMU and Wachovia, than to help Wells Fargo as an entity. (it doesn’t really to me, but that could make sense.)
February 3rd, 2009 at 6:24 pm——————————————————————————–
wiley Says:
I gotta clean out the garage. See if I can find that guillotine.
Look around for some torches and pitchforks while you are at it.
February 3rd, 2009 at 6:26 pmMy company does a similar “recognition event.” Basically every department across the corporation sends their best performer, and they get a nice trip. If this is anything similar, it’s not a corporate boondoggle, like they’re just sending all of their management to it or something. These sorts of things do get a lot of people working a lot harder so they can have a shot at going next year.
February 3rd, 2009 at 6:27 pm“It’s really important that our team members are still valued and recognized.”
I would like to be recognized too.
February 3rd, 2009 at 6:29 pmFor the last 7 years I did not get any bonus, and those FREE-LOADERS are living hige on the tax payer money.
And you see nothing wrong!
Shame on all of you, Wells Fargo.
barfly
Well, when put that way, it could be viewed as a “stimulus package” for Nevada.
February 3rd, 2009 at 6:30 pmI think prez obama should bring spitzer out from the cold to go after these guys he knows where the bodies are most likely buried and he would sniff them out and let cuomo help him they cant stand those financial terrorist…rather see these theives go to prison than someone that smokes a lil weed
February 3rd, 2009 at 6:30 pmJust got a mailer from Wells Fargo yesterday and they were going to give me $100 just for opening a new account in their bank… I guess they’re trying to stimulate the economy in another way…
February 3rd, 2009 at 6:30 pm“It’s really important that our team members are still valued and recognized.”
February 3rd, 2009 at 6:31 pmAs opposed to regular taxpayers, who are devalued and unrecognized by Wells Fargo’s disdain for them.
Bush and the jackass Repuke’s plan is beginning to look totally vulgar.
Remember when he and Paulson wanted the whole banana before he left office so they could pay off their fascist buddies?
Remember how the Dems put enforcement criteria in Bush’s recovery plan which Bush & Paulson blatently ignored?
Remember their first plan – no accountability and only two pages of bullcrap regarding the money?
Vulgar is the only word that adequately describes what these fascists have done with our money.
The other word which comes readily to mind is “criminal”.
Add this to Bush’s national crime slate. It’s called “grand larceny”. I wonder how many Repukes were paid off because they lobbied for the money for the banks?
I hope that Obama hasn’t curtailed the illegal spy program just yet…..there’s got to be a lot of criminal activity to be uncovered on some of the key GOPhers in Congress.
February 3rd, 2009 at 6:35 pmAll right, a**hole bank, I have this gun to your head. Take the bailout money or else.
Forced to take the bailout money? Talk to the tooth fairy.
February 3rd, 2009 at 6:35 pmPeople, if you haven’t found a local credit union to do your banking with…why not?
February 3rd, 2009 at 6:35 pmBy the time these criminals are frog-marched before Congress and the people get the nasty truth about their money and where it really went, Eric Holder will be knee deep in Bush criminal behavior. Add this rip-off of the american people and he should be in jail for a mucho grande time.
February 3rd, 2009 at 6:36 pmRecognition of failures is also part of our culture. republicans don’t get it.
February 3rd, 2009 at 6:41 pm“Recognition events are still part of our culture,” spokeswoman Melissa Murray said. “It’s really important that our team members are still valued and recognized.”
I don’t think that it’s your “valuable team members” who are ripping off the American public.
You are utter SLIME.
February 3rd, 2009 at 6:45 pmWhat utter Balls! These people just don’t get it!
February 3rd, 2009 at 6:50 pmbarfly Says:
What you all seem to miss, is the fact that this could be regarded as an economically stimulative event. The gay sex trade in LV has been hit especially hard. Wells should be commended for doing their part to bolster the local economy.
You forget that in Nevada, hookers pay taxes, and they help support the state’s economy
ZZZZZINGGGG! I work in a hospital [taking my afternoon break], so I can’t guffaw.
February 3rd, 2009 at 6:51 pmI think it’s important that average Americans are valued and recognized. I think our tax dollars are paying for this mutual back-slapping — who values us?
February 3rd, 2009 at 6:53 pmWell, that does it. I’m going to check into refi-ing both my mortgage and my home equity loan.
And I will be shooting off a rather nasty email to Wells Fargo.
February 3rd, 2009 at 6:59 pmI have a a credit rating over 735; self-employed for 30 years; wanted to refinance a $480,000 mortgage that’s presently an interest-only that I originally qualified for and have not missed a payment in 2.5 years of a 5 year term and Wells, where I’ve banked personally and business for 35 years turned me down. And they got 25 billion? AND get to go to Vegas? Change you can believe in…
February 3rd, 2009 at 7:07 pmObama is set to make an announcement regarding executive compensation for firms receiving TARP money.
February 3rd, 2009 at 7:08 pmFirst I’m not supporting Wells here, I’m just calling out a piss poor post based on even shoddier “reporting”
Next, barfly…Treasury made a deal with JPM to buy WAMU not with WFC.
Treasury later asked WFC to buy WB. WFC who are tight as clams with their money (and lending standards) said no. C stepped in for WB but it was obvious it was one basket case on the precipice acquiring another basket case.
Treasury came back to WFC. They still didn’t want all the stink that WB acquired when they bought Golden West affecting WFC’s nice balance sheet, but…this time the price to gain access to the east coast was too low to say no. They did say they did not want any in their words “government handouts”.
Here’s Barrons:
http://online.barrons.com/article/SB122309128710204813.html
For the record WFC’s ended 2008 with a $2.8 billion profit even after writing off Wachovia’s crap. Again, that is amazing.
My feelings are closer to what #43 P.D says, but WFC has been one of the only good guys in this mess and this is just bad reporting. -
February 3rd, 2009 at 7:16 pmMost people in their present jobs are being told, be grateful you have a job..
February 3rd, 2009 at 7:24 pmmuch less getting a freebee to Vegas..
Wells was forced to accept this money so Wachovia could get bailed out. This company posted a profit last year. Their CEO fought and fought not to receive this money. This is one of the companies that is taking their share of responsibility.
You cannot expect a company as large as Wells to get rid of all their expenditures. Put yourself in the employees shoes’ and then answer the same question. This is by no means a “freebee” to Vegas.
Great post Stav.
February 3rd, 2009 at 7:26 pmHungry Hungry
For years I have enjoyed checking out Atrios, Sadly No and TBogg as they point to Conservative blogs that misinterpret the news and are completely out of touch with reality. IN this environment we all would like to kill all the bankers, but I don’t want counter factual posts on liberal websites. Let the other guys have the monopoly on stupidity.
February 3rd, 2009 at 7:30 pmStav,
WFC is no better than any of the other BIG Banking Institutions. In fact, they top my list as one of the worst.
“They posted a 2.8 billion profit” So?
How much of that was made from illegally closing accounts, overcharging, outragious credit interest rates. etc..etc…
I quit banking with BoA and WFC years ago. They can not come close to the kind of service my Credit Union of 20+ years does.
February 3rd, 2009 at 7:32 pmWow. I get a 20% cut in salary last month, and my bank who I have a mortgage with still goes on their yearly culturally necessary rewards trip on taxpayer bailout moneys…hmmm…
February 3rd, 2009 at 7:35 pmPut the CEO and the Board of Directors in jail for fraud and misappropriation of funds.
February 3rd, 2009 at 7:46 pmHungryHungryHippo Says:
If this was anyone other than Wells Fargo I would have a problem with it, but since it is them I can’t. They did not want the bailout many to begin with and they were forced to take it. They also did post a profit for 2008. Fargo had very little control over whether or not they got the money.
Ok, I give. Tell me how Wells Fargo was “forced” to take the money. That makes no sense to me.
February 3rd, 2009 at 7:54 pmRandom, you may want to check this out from last week…
http://online.wsj.com/article/SB123318420520726249.html
February 3rd, 2009 at 7:55 pm
EmilyD Says:
As a long time Wells Fargo customer, I’m really PISSED!
Take your money and go to your local Credit Union or a local bank than doesn’t act like a casino with your money.
February 3rd, 2009 at 7:56 pmFrom Time: http://www.time.com/time/magazine/article/0,9171,1851140,00.html
That AP article is misleading and inflammatory. I enjoy reading TP, but I’d have expected a little more thought and analysis to go into a post like this.
February 3rd, 2009 at 7:59 pmElBruce Says:
My company does a similar “recognition event.” Basically every department across the corporation sends their best performer, and they get a nice trip. If this is anything similar, it’s not a corporate boondoggle, like they’re just sending all of their management to it or something. These sorts of things do get a lot of people working a lot harder so they can have a shot at going next year.
Maybe when times are golden. But this is not the time. How about they just work harder so they can keep their cushy jobs?
February 3rd, 2009 at 8:01 pmAlthough Wells Fargo chairman Richard Kovacevich resisted, Paulson gave the bankers no choice.
I’m sorry, I don’t buy it. If Wells Fargo didn’t need the money they didn’t have to take it. They could have gotten up and walked out of the room saying, thanks but no thanks. The Feds DO NOT have to power to force banks to take taxpayer money.
February 3rd, 2009 at 8:02 pmStav Says:
Regulators also injected $1 billion of new capital into the largest of these wholesale credit unions, U.S. Central Federal Credit Union of Lenexa, Kan., after the firm on Wednesday posted an unexpected $1.1 billion loss for 2008. U.S. Central serves essentially as a main clearinghouse for the others in the network.
I’m not exactly sure what a “wholesale credit union” is, but it’s nothing like my credit union and the other one in the same town where I live. Both those credit unions are doing quite fine thank you. As a matter of fact, my credit union is having a hard time keeping up with all their new customers, those smart enough to leave the casino banks.
February 3rd, 2009 at 8:05 pmThe party is for the top mortgage officers ? So does this, like mean, the party is for those who wrote more subprimes than anyone else ?
February 3rd, 2009 at 8:40 pmBHB,
Ditto here. I do not think people realize the huge difference between a local Credit Union and Casino banks as you so aptly put.
For starters, I as a member/owner have access to thier balance sheet. I also get to provide input and I can vote on officers and money management schemes.
February 3rd, 2009 at 8:41 pmTry getting that with your casino bank.
Vegas makes me ill.
February 3rd, 2009 at 8:53 pmdb,
February 3rd, 2009 at 9:03 pmTake heart, what happens there stays there ;’)
I think my business checking account is going to stop being a part of your “culture” pretty soon, Melissa Murray.
February 3rd, 2009 at 9:18 pmTake heart, what happens there stays there ;’)
February 3rd, 2009 at 9:27 pm—
Well other than the excessive unneccessary comsuption of valuable planetary resources which could be used far more effectively elsewhere and in more honorable ways.
DB,
Right on. I failed miserably with my attempt at snarkyness.
I also have a really hard time accepting the Casinos and “Card Rooms” that have been getting approved in California.
February 3rd, 2009 at 9:37 pmLooks like Wells Fargo does give a care what people think.
February 3rd, 2009 at 10:43 pmYes, they cancelled it. Now they have to use put those cookies back in the jar.
February 3rd, 2009 at 11:24 pmThe statement’ “Wells Fargo, “once among the nation’s top writers of subprime mortgages,” has no basis in fact. Wells lost residential mortgage market share in it’s major markets for over 3 straight years to mortgage lenders writing all kinds of crazy sub-prime and option ARMs while Wells stuck to its business writiing prime conforming loans. It is true that TARP money will be a great help to Wells to cover huge losses and asset writedowns of Wachovia Bank which Wells purchased and took over January 1st.
February 3rd, 2009 at 11:41 pmMelissa Murray is wrong of course. They failed in their business. Their value is proved to be limited. And they have no right to continue this culture of privilege that is so ingrained as to defy sense. This kind of thinking is what got all these institutions where they are. Heedless expense and greed and incompetence. And now we are bailing them out.
If a financial institution is too big to fail, then we must let it fall of it’s own weight. No corporation should be allowed to get so big that it can exist without restrictions. Especially when the excesses cause the tax payers they have such contempt for, to bail them out. Some institutions will go under and deserve to. If they don’t accept restrictions on their massive growth, then we need to let them go under.
These giant institutions think they have the right to expect others to help them get bigger and richer while the rest of us get the little that’s left. Just leavings for the poor saps that are stupid enough to give them money to take those trips to resorts. You know the trips we cannot afford.
Selfish short sighted bastards.
February 4th, 2009 at 12:35 am.
B O Y C O T
Wells Fargo!
.
February 4th, 2009 at 2:36 amGosh, how nice to recognize team members. The company I work for used to do that too, but those bowling parties just got too expensive.
February 4th, 2009 at 11:59 amWell, at least they are stimulating the Las Vegas economy!!???
February 4th, 2009 at 1:59 pmIn the interest of full disclosure, my wife works for Wells Fargo and we have been on these trips previously but were not scheduled for any of these 4 trips. The supposed “investigative reporters” have the trips all wrong. They are reward trips for ALL levels of employees who meet certain goals and must be earned; not “executive retreats.” And to Keltoi at Night, you are very wrong, Wells has designed the program to specifically include tellers and employees in comparable positions in other departments; the $10-$15/hour people. Executives are relatively few and far between on these trips; the trips are for the employees. Only one of the 3 day trips scheduled was for the mortgage bankers. The others are for branch personnel and other bank departments or divisions.
As my wife observed on the last such trip, some of these people (specifically tellers an such) would probably never be able to take this kind of vacation if they had to pay for it themselves.
The trips are nice but not lavish. I would estimate that they cost about $2,000 per employee including 1 guest.
February 4th, 2009 at 3:58 pmAmazing how a blog that I considered a model of enlightment and well-researched facts repeats such a misleading sensationalist piece of trash posing as journalism.
First, WF was not bailed out. It made money in 2008, despite 4th qtr losses associated with the Wachovia merger (an acquisition which actually saved the federal govt. money). Secondly, the funds it received were part of a capital purchase program forced on it by Henry Paulsen.
http://online.wsj.com/article/SB122402486344034247.html
And as part of that purchase of bank preferred shares, Wells Fargo paid the government a divident: $372MM. Further, it made a substantial amount of new loans (more than its competitors) and worked to keep borrowers in their homes.
Further, these trips were budgeted for in 2008 and paid strictly from bank funds. Only those that could not be canceled without incurring a fee were still going to be held.
So why are we railing against a sound, well-managed institution that is doing what it should do to keep our economy and keep credit flowing? Why would we want an institution like this that employs 1000s of people and treats us with dignity and respect to fail?
February 4th, 2009 at 11:45 pm