Someone’s Finally in Charge of Wells
How’s this for water cooler gossip? An apprentice of Wall Street royalty Jamie Dimon, who heads America’s biggest bank, may have stabbed his guru mentor in the back by taking a CEO job of his own at Wells Fargo, a banking underdog that wants to return stronger!
Investors in search of a tangible income drip may find it in the financials sector, where a colorful array of stocks offer dividends. Throughout the hot and cold space of investment banks and insurance firms, competition is fierce. Top of the stack right now is J.P. Morgan, a ruthlessly efficient bank led by Wall Street legend, Jamie Dimon. Some even tip him for President one day! Somewhere nearer the bottom of the rankings, you’ll find poor old Wells Fargo.
Investors in Wells Fargo have smiled through the pain since 2016 when the bank was called out for pretending to have customers it didn’t. Its CEO went wimpy and quit, the replacement CEO went wimpy and quit, and the entire bank was left rudderless!
However, stock in the Wall Street outcast jumped 4% on Friday. The bank finally found a new leader in Charlie Scharf, a financier who learned his trade under the esteemed, Jamie Dimon. Scharf got his break by mailing his resume to Dimon during college, but now his new post will see the two go in direct competition with one another.
Before they can go toe-to-toe, however, Scharf has a repair job to do. Shareholders want a complete overhaul of corporate culture, and they want it quick. Financial companies are cyclical, so they tend to fare better during a strong economy when people are bullish about investing. In other words, now! Mr. Scharf will be clocking some long hours!