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I have always wondered; is there a limit to the extent of losses these financial companies keep enduring? Every time Wells Fargo is in the news, it is about som

I have always wondered; is there a limit to the extent of losses these financial companies keep enduring? Every time Wells Fargo is in the news, it is about some loss or fine to the tune of hundreds of millions of dollars.

Havoc 4y ago
The limit is shareholder patience. There is no numeric limit So either it needs to make strategic sense in the shareholders mind or the loss number needs to be deemed reasonable in the context of business size. Reasonable there is again shareholder subjective
isthisthingon99 4y ago
Probably a payment plan on the fines.
- DonHopkins 4y ago
  Stop making homophobic and transphobic posts. https://news.ycombinator.com/item?id=34402242 https://news.ycombinator.com/item?id=34402242
mensetmanusman 4y ago
Too big to fail.
lotsofpulp 4y ago
Wells Fargo still reliably earns its shareholders $20B in profits, outside of 2020. https://www.macrotrends.net/stocks/charts/WFC/wells-fargo/net-income https://www.macrotrends.net/stocks/charts/WFC/wells-fargo/ne... But its shares have lost value relative to shares of its competitors, Chase and Bank of America. They are still at 2012 market cap, while Chase and Bank of America have made huge increases. M
- egberts1 4y ago
  BofA had huge increases mostly through expansion of BofA credit cards for states' unemployment checks. Now even that is shrinking due to competition (and fewer unemployment).
  - lotsofpulp 4y ago
    Unemployment benefits come on debit cards, which earn very little profit since debit card fees are legally capped and very low. BoA has been on a steady march upward since 2010: https://www.macrotrends.net/stocks/charts/BAC/bank-of-america/market-cap https://www.macrotrends.net/stocks/charts/BAC/bank-of-americ... https://www.ftc.gov/business-guidance/resources/new-rules-electronic-payments-lower-costs-retailers https://www.ftc.gov/business-guidance/resources/new-rules-el... > Beginning October 1, 2011, interchange fees for certain debit cards are capped at 21 cents plus 0.05% of the transaction value. If the issuer meets specific fraud prevention standards, the fee may go up a penny. The cap applies only to large issuers — banks and other card issuers with $10 billion or more in assets (including assets of affiliates).

Havoc 4y ago

The limit is shareholder patience. There is no numeric limit So either it needs to make strategic sense in the shareholders mind or the loss number needs to be deemed reasonable in the context of business size. Reasonable there is again shareholder subjective

isthisthingon99 4y ago

Probably a payment plan on the fines.

DonHopkins 4y ago
Stop making homophobic and transphobic posts. https://news.ycombinator.com/item?id=34402242 https://news.ycombinator.com/item?id=34402242

mensetmanusman 4y ago

Too big to fail.

lotsofpulp 4y ago

Wells Fargo still reliably earns its shareholders $20B in profits, outside of 2020. https://www.macrotrends.net/stocks/charts/WFC/wells-fargo/net-income https://www.macrotrends.net/stocks/charts/WFC/wells-fargo/ne... But its shares have lost value relative to shares of its competitors, Chase and Bank of America. They are still at 2012 market cap, while Chase and Bank of America have made huge increases. M

egberts1 4y ago
BofA had huge increases mostly through expansion of BofA credit cards for states' unemployment checks. Now even that is shrinking due to competition (and fewer unemployment).
- lotsofpulp 4y ago
  Unemployment benefits come on debit cards, which earn very little profit since debit card fees are legally capped and very low. BoA has been on a steady march upward since 2010: https://www.macrotrends.net/stocks/charts/BAC/bank-of-america/market-cap https://www.macrotrends.net/stocks/charts/BAC/bank-of-americ... https://www.ftc.gov/business-guidance/resources/new-rules-electronic-payments-lower-costs-retailers https://www.ftc.gov/business-guidance/resources/new-rules-el... > Beginning October 1, 2011, interchange fees for certain debit cards are capped at 21 cents plus 0.05% of the transaction value. If the issuer meets specific fraud prevention standards, the fee may go up a penny. The cap applies only to large issuers — banks and other card issuers with $10 billion or more in assets (including assets of affiliates).