What ever happens in Las Vegas . . . will have to happen without Wells Fargo (NYSE: WFC). The lavish, fun-filled, all-expenses-paid extravaganza funded by the taxpayer, was initially defended, then cancelled.
"In light of the current environment, we have now decided to cancel this event as well," the company said Tuesday night in a news release that also said it had never planned to use taxpayer bailout money for the trip.
As a shareholder, I would be upset even if no tax / bailout money was involved. Wells Fargo had a $2.83 billion loss in the fourth quarter as it took significant charges to reduce its exposure to the risky assets.
Rep. Shelley Moore Capito, a West Virginia Republican who sits on the House Financial Services Committee was outraged. "These guys are going to Vegas to roll the dice on the taxpayer dime?" the AP reported he said. "They're tone-deaf. It's outrageous."
I hope the representative was thumping on her desk when she said it because that is the sentiment I got from friends and associates in my email.
No doubt, this trip was planned way in advance, before the losses, the Wachovia acquisition and the bailout money was accepted. However, that is why it bothers me more as a shareholder than a taxpayer. This never shows up in the annual report. For most employees, in most companies, a bonus would be plenty, and as we have learned over and over the past few years -- these have been ridiculous as well!
Bank representatives stated that taxpayer money would not have been used. How can they tell?! The money is fungible and one dollar looks quite similar to the next. Every single dollar that can, should go toward returning to profitability -- period.
Sheldon Liber is the CEO of a small private investment company and the principal for design and research at an architecture & planning firm. He writes the columns Chasing Value and Serious Money. DISCLOSURE: I currently own shares of WFC.
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Reader Comments (Page 1 of 1)
2-04-2009 @ 9:36AM
RoseMary said...
They canceled this madness just in time... I was drafting MY letter of complaint and planning on emailing it to them this morning... LOL ... Lucky for them!!!
2-04-2009 @ 10:35AM
bitasno said...
I read a related article this morninig about patiet zero a fanciful lie about who started the recesson . It was a tale blameing a poor smuck for loseing his home with a sub prime loan . I.E. subprime loan ,,,, who was offering this guy this loan telling him he could get the money no problem who was the lender expecting the bubble to keep going up into the stratisphere no it isnt the people thats guilty on this one they were just trying to get their piece of the pie too. no the blame lays directly on the banks . and greed that had no bounds and they havent got the picture yet. hell the only reason wells fargo cancelled the party in vegas is because it was spread out in the media HELLO. its business as usual but hush dont tell anyone . that what is so stupid about this , in this day and age people have the net , your not able to pull the ole wool over the eyes quite as easy as you used to be able to do . and to be totaly candid we sick to hell of it . so dont blame thew little guy , put the blame where it needs to be , aig, citi chase wells wacovia morgan and others . and the point is they havent got the message yet .
2-04-2009 @ 11:23AM
kellybkk said...
What the media and Wells won't tell you is that there is very little "savings" involved in cancelling this shindig -- the deposits demanded by the Las Vegas hotels are large and NON-REFUNDABLE. It's all PR, gents . . .
2-07-2009 @ 6:45AM
browneyed said...
What most people do not realize is that the people going to this event are people like you and me, exceptionally hard working Americans who have worked hard all year to support their families and are being rewarded for their performance. They receive no bonuses as I know full well. WF has paid a $371millon dividend to the Treasury- Who else has done that. When is the American Govt. going to report that it is actually making money from their purchase of preferred stock shares in WF. That is right Thier purchase of preferred stock in Wells and JP Morgan. If I remember right from a CNBC story that JP Morgan and Wells Fargo Did not waat any federal money. They in fact were forced to take it because the Treasury would have looked bad if the two good banks would not take the money. Then the Feds have the nerve to beg Wells and JP Morgan to help them out buy buying suffering WAMU and Wachovia. Then Wells reports a very small, in relation to other financial companies, 4th QTR loss and you would have thought they had robbed FT KNOX. The losses reported were due to Bad Wachovia assets being written down period. Bottom line is all companies reward their best proforming employees. Heaven forbid a good bank tries to do it. Wells should just give the money back, request a refund of the DIVIDEND they sent to the Treasury, and next time the FED/Treasury/FDIC calls for help or guidance just don't answer the phone.