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I suspect Warren Buffet may have pushed for Stumpf's resignation/termination, as well as other damage control measures. This is a similar situation to the Solom

by shill 10y ago

I suspect Warren Buffet may have pushed for Stumpf's resignation/termination, as well as other damage control measures. This is a similar situation to the Solomon scandal, although Buffet has a smaller stake in WFC.

bogomipz 10y ago
Was WF one the banks he took a stake in after the 2008 crisis?
- tedmiston 10y ago
  From an article last month [1]: > Berkshire Hathaway (BRKB) owns nearly 470 million shares of Wells Fargo (WFC), a 9.5% stake. Buffett also personally owns a little more than 2 million shares in the bank. The combined value of that investment has dropped by nearly $1.5 billion since Friday. I could see why he might be upset. [1]: http://money.cnn.com/2016/09/14/investing/warren-buffett-berkshire-hathaway-wells-fargo-fake-account-scandal/ http://money.cnn.com/2016/09/14/investing/warren-buffett-ber...
  - x0x0 10y ago
    I would also suggest Buffett is very focused on his reputation, and doesn't want to be seen tolerating behavior like this. From one of his letters to his managers: We can't be perfect but we can try to be. As I've said in these memos for more than 25 years: "We can afford to lose money — even a lot of money. But we can't afford to lose reputation — even a shred of reputation." We must continue to measure every act against not only what is legal but also what we would be happy to have written about on the front page of a national newspaper in an article written by an unfriendly but intelligent reporter. http://blogs.wsj.com/deals/2011/03/31/warren-buffett-on-ethics-we-cant-afford-to-lose-reputation/ http://blogs.wsj.com/deals/2011/03/31/warren-buffett-on-ethi...
  - bogomipz 10y ago
    Indeed, thats a lot of wealth that has evaporated in a short period of time. Interesting, from your link: "In fact, Berkshire Hathaway filed papers with the Federal Reserve this year for approval to boost its stake in Wells Fargo beyond 10%"
nappy-doo 10y ago
You're probably wrong. First of all, Warren Buffett has recently petitioned the SEC to allow him to own more than 10% of WFC. If the SEC were to allow that, BRK's holding in WFC would have to be (basically) silent. No control over WFC management could be exerted. WRT to Solomon, as a percentage, yes BRK owned more, but in absolute terms, WFC is much larger. It's like 20:1.

by shill 10y ago

bogomipz 10y ago

Was WF one the banks he took a stake in after the 2008 crisis?

tedmiston 10y ago
From an article last month [1]: > Berkshire Hathaway (BRKB) owns nearly 470 million shares of Wells Fargo (WFC), a 9.5% stake. Buffett also personally owns a little more than 2 million shares in the bank. The combined value of that investment has dropped by nearly $1.5 billion since Friday. I could see why he might be upset. [1]: http://money.cnn.com/2016/09/14/investing/warren-buffett-berkshire-hathaway-wells-fargo-fake-account-scandal/ http://money.cnn.com/2016/09/14/investing/warren-buffett-ber...
- x0x0 10y ago
  I would also suggest Buffett is very focused on his reputation, and doesn't want to be seen tolerating behavior like this. From one of his letters to his managers: We can't be perfect but we can try to be. As I've said in these memos for more than 25 years: "We can afford to lose money — even a lot of money. But we can't afford to lose reputation — even a shred of reputation." We must continue to measure every act against not only what is legal but also what we would be happy to have written about on the front page of a national newspaper in an article written by an unfriendly but intelligent reporter. http://blogs.wsj.com/deals/2011/03/31/warren-buffett-on-ethics-we-cant-afford-to-lose-reputation/ http://blogs.wsj.com/deals/2011/03/31/warren-buffett-on-ethi...
- bogomipz 10y ago
  Indeed, thats a lot of wealth that has evaporated in a short period of time. Interesting, from your link: "In fact, Berkshire Hathaway filed papers with the Federal Reserve this year for approval to boost its stake in Wells Fargo beyond 10%"

nappy-doo 10y ago

You're probably wrong. First of all, Warren Buffett has recently petitioned the SEC to allow him to own more than 10% of WFC. If the SEC were to allow that, BRK's holding in WFC would have to be (basically) silent. No control over WFC management could be exerted. WRT to Solomon, as a percentage, yes BRK owned more, but in absolute terms, WFC is much larger. It's like 20:1.