# Wells Fargo (WFC)



## 888evo (Jun 21, 2012)

Can someone help me on this:
What's the difference between WFC and its preferred stock WFC-J? Both are tradeable and gets dividend. For long term hold (> 5 years), why would I buy WFC when I can get 8% from WFC-J?


----------



## PMREdmonton (Apr 6, 2009)

I am not familiar with the particular terms of this preferred but most preferreds tend to have a very limited upside and can be recalled by the bank at a fixed price at a date in the future. If you buy at a premium to this price you can always have your stock called away at a loss. If it is selling at a discount to this price there is a possible capital gain. So the downside is lack of potential for major capital gains.

The plus side is the extra dividends and you have more potential to recover some value in the case of a bankruptcy as you line up ahead of the common shareholders but after the creditors.


----------



## atrp2biz (Sep 22, 2010)

For prefs, you have to read the prospectus. A major thing to note is that the J-class prefs are not cumulative. In other words, if they don't declare a dividend for a given period, they have no obligation to make up for it down the road.

https://www.wellsfargo.com/downloads/pdf/invest_relations/overview/WFCPrJ.pdf


----------



## james4beach (Nov 15, 2012)

An old thread, but I couldn't find a more relevant place to post this.

I am a customer of Wells Fargo and am potentially affected by the massive fraud they did -- opening unauthorized accounts for people. Employees of Wells Fargo did this by using fake or blank applications, and sometimes fake email addresses. Some of these unauthorized accounts incurred fees, but others had no fees. They opened at least 3.5 million fake accounts.

I've been trying to figure out whether or not I'm affected. I started at a branch by asking this question: did Wells Fargo open accounts in my name without my permission? In the last few years, have any other accounts been opened in my name? (Besides the ones I know that I have).

So far, I haven't been able to get an answer to this question and my gut is telling me they're giving me the runaround. I personally have not seen any extra or unusual accounts in my account listing, but the bankers at the branch told me that what you see online is not comprehensive. They said that additional accounts may exist, or may have existed at some point in the past, that are visible to the back office and NOT visible through my active profile.

The branch told me that they cannot see that bigger list. So I asked, how can I see it? How can I find out if I'm affected?

They told me to call the primary phone number for bank customers. So I did this, where I got yet another runaround from an employee who told me that they don't have that information. They said I will have to go to another phone number... this one isn't run by Wells Fargo, but rather by an administrator of a class action lawsuit. I asked to speak to the rep's manager, and they said I can't do that, and have to phone the other name.

So far, the branch can't answer my question, the bank support line can't answer my question, and I've been bounced to this Claims Administrator ( https://wfsettlement.com/ ). I'll try phoning them.

This big fraud was a nice wake-up call, and I'm moving all excess savings that I was keeping at Wells Fargo into big Canadian banks instead.


----------



## AltaRed (Jun 8, 2009)

J4B, I have a Wells Fargo chequing account and credit card (for the last 17 years or so). Neither have incurred any charges that I did not make myself. If I have not incurred any costs whatsoever, I don't have a "real" issue with what might be phantom accounts behind the scenes opened covertly to pad the bonuses of certain employees. It's not like they are making any nefarious money off me. IOW, I am not losing any sleep over this sordid affair.


----------



## james4beach (Nov 15, 2012)

Maybe that's the way I should think of it too... unless there were fees charged, the fraudulent accounts might be harmless.


----------



## fatcat (Nov 11, 2009)

james4beach said:


> Maybe that's the way I should think of it too... unless there were fees charged, the fraudulent accounts might be harmless.


good thing they are in the usa and you don't miss them on your fbar


----------



## james4beach (Nov 15, 2012)

Good example of how there can be real consequences to these fake accounts, though in our case Canada doesn't want something like FBAR.


----------



## fatcat (Nov 11, 2009)

james4beach said:


> Good example of how there can be real consequences to these fake accounts, though in our case Canada doesn't want something like FBAR.


we have a similar phenomenon in canada where institutions simply forget to close accounts after you request that they do so

they are either disorganized or lazy ... i discovered an account still open that i thought was closed just in time to report it

banks should be required by law to inform customers that accounts have officially been closed


----------



## james4beach (Nov 15, 2012)

This is unbelievable. I called the administrator relating to their settlement (the place Wells Fargo keeps referring me to whenever I ask them for clarification), and told the rep the problem I'm having determining whether or not I was affected, since Wells Fargo refuses to tell me.

This administrator says that they don't have this info and Wells Fargo are the only ones who can give me a comprehensive listing of past accounts and activities. So really what this shows is that Wells Fargo is completely unwilling to make this information transparent and really is giving me the runaround.

I think I'll join the class action lawsuit.


----------



## londoncalling (Sep 17, 2011)

Earlier in the pandemic, I had planned to buy some US financials. As I have watched the repeated failure in flattening the curve I turned my attention to Canadian equities. By chance last night I took a peek at some of the US banks. Wells Fargo is now yielding 8+% . To me that is an insane payout that will likely be slashed. Some would argue this is not a banking crisis so we shouldn't assume dividends will be slashed. I read a few articles about the US banks suspending share buybacks to preserve cash to continue paying the dividends back in March. I expect many banks to cut or suspend dividends even if just for a few quarters. I understand the future is unknown at the best of times but would be interested in hearing some opinions on US financials. I hae never owned a US bank stocks but have held Canadian and European banks in the past. I have also found this dated but interesting article on bank dividends during the financial crisis. Although not groundbreaking information it may provide some perspective.





__





Understanding bank payouts during the financial crisis of 2007-2009


Banks' payout decisions at the beginning of the financial crisis of 2007-2009 were particularly controversial as the crisis eroded the capital of many banks. Concerns were raised that banks may have engaged in wealth transfer to shareholders, or that they may have been reluctant to reduce...




voxeu.org


----------

