How Elizabeth Warren Took Down the CEO of Wells Fargo, and Why It Matters
I absolutely love Senator Warren. That being said, the notion that the stock price of Wells Fargo could be significantly impacted by this scheme (which is central to Ms. Warren&#x27;s argument) is not well founded.<p>Wells Fargo makes 86 billion in revenue per year. Even if 10 million accounts were made and each made a thousand dollars -- (incredibly generous) ... over the course of 5 years this accounts for 1 billion in revenue or 200 million dollars per year. Annualized it is much less than 1% and would not inflate the stock price.<p>These guys definitely made a mistake. It wasn&#x27;t calculated fraud. It was bad incentive setting. Politicians like Warren don&#x27;t intuitively understand how hard it is to actually control a group of thousands of middle-class workers and get them to do things.It is not easy to govern ... sadly politicians are the least knowledgable in what it takes and they hurt good people like Stumpf (I trust his leadership and qualities because he was appointed by Buffett).<p>WF stock dropped a bit prior to the hearing and I bought as much as I could. Luckily most of Wall Street is smarter than such politicians and it paid off. Thanks Senator Warren.<p>What I would like to see is politicians be held to the same accountability as these guys. That would be hilarious. I wonder how well Obamacare would do if we could actually measure results based on metrics.<p>Our society needs people that can blend business acumen with the spirit and heart of people like Elizabeth Warren. Only Buffet or Gates come to mind.