I am SO irked about the Wells Fargo/Las Vegas "Junket" story

[PBS Poll-435]

Wells Fargo Balance Sheet (For the period ending 12-31-08

Wells Fargo Income Statement (For the period ending 12-31-08)


I can not believe the rabid frenzy over This.




Wells Fargo makes a hefty profit. They pay their taxes (Nearly 1.9 billion on 2008 earnings.) They did not want TARP money. They did not need TARP money. Their bank, unlike a certain "C" bank who will go nameless...



It was forced on the by Paulson. The US Government is the main beneficiary, not Wells Fargo. Wells Fargo paying $371.5 million {in dividends} to government



If they want to spend some of their profits on a Sales and Service Conference for its employees in Las Vegas, then who gives a flying fuck?

[CLANG]

1. Because they are spending taxpayer money

[PBS Poll-435]

2. No they aren't.

It isn't tax-payer money anymore. Wells Fargo, at the Goverment's DEMAND, sold 25,000 shares of series D preferred stock.

The Government is making out like a bandit on this deal. (Wells Fargo has already paid $341,000,000 in dividends to the Federal Government)

[CLANG]

5. They took 25 BILLION olf TARP money

They should pay back the price of their "junkets".

[PBS Poll-435]

10. They can't pay the money back. Not for a minimum three years.

The government wants some of those tasty dividends.

[CLANG]

12. That's bullshit and you know it... (figurativley speaking, of course).

[PBS Poll-435]

13. Here is a link to the technicals of the deal.

http://www.wallstnation.com/WFC-103008.HTML

Read where it specifically says:

"After three years, Wells Fargo can redeem the preferred securities at par value plus accrued and unpaid dividends."

And...:

As part of its purchase of the preferred securities, the Treasury Department also received warrants to purchase 110,261,688 shares of Wells Fargo’s common stock at an initial per share exercise price of $34.01.

Just in case they want some more tasty dividends...

Wells Fargo & Company Announces Dividend

San Francisco — January 28, 2009
Wells Fargo & Company (NYSE: WFC) today announced a quarterly common stock dividend of 34 cents per share. The dividend is payable March 1, 2009, to stockholders of record on February 6, 2009. The Company has approximately 4.2 billion shares outstanding.

Wells Fargo & Company is a diversified financial services company with $1.3 trillion in assets, providing banking, insurance, investments, mortgage and consumer finance through more than 11,000 stores, over 12,000 ATMs and the internet (wellsfargo.com) across North America and internationally. Wells Fargo Bank, N.A. has the highest credit rating currently given to U.S. banks by Moody’s Investors Service, “Aa1,” and Standard & Poor’s Ratings Services, “AA+.”

[CLANG]

15. I'm so sorry, apparently I was grossly misinformed.

[Scooter24]

11. The TARP funds were used to buy the stock...

as an investment into the bank. Of course it's taxpayer money, but the taxpayer also owns a small portion of Wells Fargo as a result.

This does not give the taxpayer decision-making power in the company unless dictated in the initial agreement.

[oldtime dfl_er]

3. I have to admit

I don't understand this at ALL. You mean WF didn't need bailout money, and was "forced" to take some, so they spent it on Vegas booze, hookers and gambling? Whose fuckup was it? You say Paulson forced the money on WF, but that makes no sense.

We need to clone Obama because there are way too many HUGE fuckups left behind by the former criminals who ran this country for one man to fix.

[Scooter24]

8. All the large banks were summoned to the Treasury

and pretty much were told that all of them were going to take this money. No bank wanted to have an advantage over another as appearing to be "better" than the other. This move kept all banks on equal footing preventing a flood of customers to any one bank.

[PBS Poll-435]

9. It really wasn't "bailout" money. Wells Fargo sold them stock

And Wells Fargo won't let them buy it back for 3 years. The Government wanted to balance the bailout bucks. Citi is likely to need even more assistance before everything is said and done, so they needed to make-up some money somewhere. So they walked into Wells Fargo and pulled out a gun.


I found a good article on the technicals.

http://www.wallstnation.com/WFC-103008.HTML

[Uzybone]

4. I agree with the OP

same with the outrage over BofA having a party at the Super Bowl. These fuckers are bilking us of billions, yet the media is trying to distract us with fluff.

[juno jones]

6. Its symbolic

and in horribly bad form as they and others foreclose on working people across the country. It brings up the images of the Gilded Age and Robber Barons who partied their way across a depressed America in the 1870's, the Gatsbys of the 20's and 30's who could afford huge parties on 'New Egg' while the world starved around them.

It is shitty PR, is what it is.

[PBS Poll-435]

14. I don't think it should have ever been a news story

Especially not one that was as slanted as the AP piece.

Wells Fargo should be able to reward their employees for the company's annual PROFIT.

[Scooter24]

7. I have no problem with this trip...

But at least they aren't using the money to buy out other banks.

Wells Fargo paying $371.5 million to government
The big bank says taxpayers are reaping a dividend for their $25 billion investment.

http://money.cnn.com/2009/02/02/news/wells.dividend.fortune/

Wells (WFC, Fortune 500), which got $25 billion from Treasury last October in the first installment of the Troubled Asset Relief Program, or TARP, also said that it has been lending money aggressively even as the economy sputters.

"Last quarter alone, we made $22 billion in loan commitments and $50 billion in mortgage originations," Wells finance chief Howard Atkins said in a midmorning press release Monday. He added that this is almost three times what the Treasury invested in the bank.

[PBS Poll-435]

18. The fact that they have already paid dividends tells me one thing

Between the taxes and the dividends, it is more like Wells Fargo is bailing out the Federal Government than the other way around.

[AntiFascist]

16. Socialism for the wealthy...

not only can the wealthy afford expensive junkets using taxpayers' investment funds, but the government now derives its income from corporate profits. It's a win-win situation for the corporo-fascist government that bypasses the taxpayer altogether. The taxpayers can freeze to death in their homes for all the government cares, as they begin to cater to the corporations.

[PBS Poll-435]

17. I don't think that is the case here at all

This is a trip for the employees of Wells Fargo. Who paid their taxes and made a profit last year.

They are a very good corporate citizen and saved the Wachovia shareholders from the ridiculously stupid Vikram Pandit and a willing(and able) FDIC.

[AntiFascist]

20. Wells Fargo is not necessarilly to blame...

if they have extra cash available, why not spend it on trips for employees?

I'm more concerned about the Federal Government being involved in such a relationship with profitable companies where it is a win-win situation all around for wealthy individuals.

[PBS Poll-435]

19. self kick