Description: The article is about wells fargo bank login. This passage mainly focuses on Wells Fargo. Warren Buffett gives his own views about Wells Fargo. He makes some reviews about Wells Fargo from his own perspective.
At Wells Fargo,they made one mistake,but maybe I’ve made that from time to time. They came up with improper incentives. They have incentive bad behaviors and they send a good behavior,that happens from time to time. You can put bigger Commission in something,let’s talk very specifically about what incentives were created. They are incentives that reward people for the number of new accounts.
They have their investor presentations,eight would be great in one product,they put this huge emphasis to the public,they had more services to their shareholders. People started creating fake accounts,when bad behavior gets in there,other people figured out that they may get rewarded for that behavior. I have a lot of bad behaviors. That’s a problem,I’m sure it’s a problem we’ve from time to time in a merger and other places.
The real problem is that when you find out about it,you have to stop it immediately. I don’t know what the details are,I’ve seen that before. It gets out of hand.
If you don’t stop it immediately,if you do it four months later,everybody will come and say why didn’t you do something. Let’s be a little more pointed with this. tWells Fargo was not stopping bad incentives immediately. It was quashing whistle blowers who were behaving properly.
I don’t know the details on that,I know this firsthand from what has been reported,there have been many whistle blowers who said that they were trying to do the right thing,they tried to report it. Paul Mosier is a trader,government was losing something. John was not profiting from it,they didn’t know about it. But the next minute he had to pick up that phone and call Jerry Corrigan of the Federal Reserve of New York.
Everybody thought it was going to do it in the room,but it was unpleasant,he got distracted. On May 15th,Mosier did it again. This pyromaniac was out there,you let him find another match. It’s your big trouble. There’s a problem,he doesn’t let me procrastinate and I might procrastinate,it’s a very human trait. They uncover other wrong things as you get into it. A couple of our great opportunities came from similar situations.
Geico had a CEO in the early 70s who refused to accept the fact that the lost reserves were developing badly. If you refuse to accurately assess your loss reserves,you also don’t know your costs because you sell the profits first. You start kidding yourself on the cost,you get in a hole and now your reserves are in there.You’ve to admit that it’s easier to shut your eyes and hope something good will happen.
It essentially bankrupted the company. That was a huge opportunity for us because Geico was a solid company,but their balance sheet was a mess,they needed to raise capital,they almost got their licenses withdrawn,we bought half the company for less than 50 million bucks.
Wells Fargo still got the accounts,they’ve got the loan customers. We do business with them every day. You don’t make mortgage without securities. The banks had their share of trouble,Wells Fargo have theirs in a particularly egregious way. They made less money doing that. You can stop bad practices,they should be stopped earlier than that.