Source: The Motley Fool —
Plus, we take a look at “key person risk” and what investors need to know.
In this podcast, Motley Fool senior analyst Asit Sharma discusses:
- Wells Fargo, once the biggest player in mortgages, announces it is making a strategic shift.
- The role that the current state of housing plays in Wells Fargo’s decision.
Addiitonally, Motley Fool senior analyst Tim Beyers and engineering manager Tim White take a closer look at “key person risk.”
To catch full episodes of all The Motley Fool’s free podcasts, check out our podcast center. To get started investing, check out our quick-start guide to investing in stocks. A full transcript follows the video.
Before you consider Wells Fargo, you’ll want to hear this.
The Motley Fool Stock Advisor analyst team just revealed their 10 Best Buys Now… and Wells Fargo wasn’t one of them.
Stock Advisor is the online investing service that has beaten the stock market by 3x since 2002*. And the team just revealed their 10 Best Buys Now.
This video was recorded on Jan. 11, 2023.
Chris Hill: We’ve got big news from a big bank and we’ve got big news about a brand-new podcast. Motley Fool Money starts now. I’m Chris Hill, joining me today Motley Fool senior analyst Asit Sharma. Thanks so much for being here.
Asit Sharma: Chris, as always, thank you for having me.
Asit Sharma: I think it’s 60-40, Chris. I think this is 60% Wells Fargo and 40% the housing market, but that’s a big number if 40% can be attributed to the external environment. This is a company that used to pride itself on being the biggest, baddest mortgage player in the market. As you point out, at one time it was the very biggest in home mortgages in the U.S. But over time, I think the board came to realize that biggest isn’t always the best, especially in a slower-growth industry like banking, where you are trying to incentivize employees to grow much more quickly than competitors. I believe that this race to be big, stay big and the like had a detrimental effect to the way that Wells Fargo approached the whole idea of sales and it led to incentives, having people do not-so-great stuff.
;
