John Stumpf's survival chances

Warren Buffett to Fox Business: I'll Remain Silent on Wells Fargo for Now


If history is any guide, Buffett can't be thrilled about the ethics lapse.

25 years ago this month, Buffett testified before a Congressional sub-committee regarding the Salomon Brothers bond scandal. Buffett had become a major shareholder in Salomon when it was revealed that traders had been submitting false Treasury bond bids in order to skirt trading rules. Buffett swiftly took over as CEO and fired a number of management.

At the time, he said during the testimony, "Lose money for my firm and I will be understanding; lose a shred of reputation for the firm, and I will be ruthless."
Whipping Wells Fargo - The bank blundered, and the politicians will make it pay.


Now we see that even bread-and-butter retail can lead to political retaliation as Senators call for Mr. Stumpf to resign and demand a criminal investigation. Readers know that unauthorized accounts are an affront to customers, but Senate progressives on Tuesday described sales targets as inherently evil. Senators also want executive-pay clawbacks, though the scandal has hardly dented bank earnings.

Mr. Stumpf, who will be lucky to survive as CEO, is learning the hard way that as long as banks remain public utilities they are a lousy business.
Comment: "Buffett's Berkshire Hathaway (BRK.B) holds a near 10% stake in Wells Fargo (WFC). The Oracle of Omaha has been a longtime fan of the company but his silence may speak more loudly after Wells Fargo CEO John Stumpf gave a rocky performance on Capitol Hill before the Senate Banking Committee Tuesday morning. " My view below:

Wells Fargo once a "most admired" company! Since breaking of the scandal, Wells Fargo has lost $ 25 Billion in Market Capitalism. "“The stock has gone from loved to loathed in two to three weeks"

Wells Fargo is absolutely getting hammered on social media. Snip from Facebook below:

Updated: Multiple fired Wells Fargo employees report to CNN that they were fired after calling ethics hotline.


Basil Hayward Calendar - 1946

Ebay find: Basil Hayward Calendar - 1946. I am his grandson. Basil died in December 1949 from a broken neck when I was 4 months old

1946 Wall Calendar Artwork by Russell Sambrook, Basil Hayward Alto Michigan

The artist Russell Sambrook (1891 – 1956)


Wells Fargo: A Disconnect in Visions and Values

Wall Street Journal: How Wells Fargo’s High-Pressure Sales Culture Spiraled Out of Control


They say many branch managers routinely monitored employees’ progress toward meeting sales goals, sometimes hourly, and sales numbers at the branch level were reported to higher-ranking managers as many as seven times a day. Tension about how to meet the sales targets was common.

“If somebody said: ‘This doesn’t make sense. Where are you getting these sales goals?’ then [the response] was: ‘No, you can do it’ or ‘You’re negative’ or ‘Oh, you’re not a team player,’” says Ruth Landaverde, a former Wells Fargo credit manager in Palmdale, Calif.

She says she often got the same response whenever she said a customer didn’t need another credit card. “The answer was: ‘Yes, they do,’” she says. She quit after being warned she wasn’t reaching her sales goals, she says.

Employees at a Wells Fargo branch in Lincoln, Neb., had a daily goal to open two new checking accounts and make eight other product sales, says Steven Schrodt, who worked there from 2010 to 2012.

Managers asked employees who had fallen short of the targets if they could open accounts for their mother, siblings or friends, according to Mr. Schrodt and other former employees. He says he opened about 15 accounts for friends and family members. Mr. Schrodt says he decided to leave Wells Fargo because the sales pressure was too stressful. He is now in law school.

John Stumpf: The Vision and Values of Wells Fargo


Our progress has not been perfect. The expectations of others, and the even higher expectations we have of ourselves, have not always been met. When we make mistakes, we admit them, we learn from them, and we keep moving forward with even more understanding and a deeper commitment to doing what’s right.

We first published a Vision & Values booklet in the early 1990s as Wells Fargo’s predecessor, Norwest Corporation. Since then, we’ve grown from a small regional bank into a national company with a growing global presence.

Today, many of our team members trace their heritage to legacy companies that are now part of the Wells Fargo brand. Each of these companies brought with it new geographies, new capabilities, and inspiring stories. All have found a common cause in adopting our vision and values.

We believe in our vision and values just as strongly today as we did the first time we put them on paper, and staying true to them will guide us toward continued growth and success for decades to come.

As you read more about our vision and values, you will learn about who we are, where we’re headed, and how every Wells Fargo team member can help us get there. We’ve become one of the nation’s largest financial institutions, serving one in three U.S. households and employing approximately one in 600 working Americans.

We have team members in 36 countries, serving 70 million customers in more than 130 countries around the world. Forbes magazine ranks us among the top 10 publicly traded companies in the world based on a composite of sales, assets, profits, and market value. And we are consistently ranked as one of the world’s most respected banks by Barron’s magazine and one of the world’s most admired companies by Fortune magazine.

The reason for this is simple. We’ve never lost sight of putting our customers first and helping them succeed financially. Regardless of our growing size, scope, and reach, our common vision and distinct values form the fabric that holds us together wherever we are, whatever we do. As members of the same team, it doesn’t matter what our respective responsibilities are, our levels or titles, what businesses we’re part of, or where we live and work.
  • I am both a retiree from Wells Fargo (21 years) and
  • I am a happy customer for 20 years
  • I have personally never witnessed a violation of Well Fargo's Vision and Values but I was in IT for my entire time.
  • I do have a close family member who quit as a Wells Fargo teller because he felt undue pressure to sell products
  • In my time as a customer, they have never pushed a product on us. 
  • I believe that the nefarious activities have been relatively rare. But in a large company the numbers are likewise large: 1.5 M accounts and .5 M CC accounts. The number of fired employees is likewise large, 5,300! But that was over 5 years and with 300,000 employees the number is statistically small.
  • Nevertheless the scandal is real. 
  • With any organization, whether a church, government, or business, there will be bad apples
  • Upper management must more deeply impress the Vision and Values to the lowest levels and ensure that sales goals do not force this disconnect.


The Monsters Among Us - "Meat Computers"?

Atheist Jerry A. Coyne: Why you don't really have free will


You may feel like you've made choices, but in reality your decision to read this piece, and whether to have eggs or pancakes, was determined long before you were aware of it — perhaps even before you woke up today. And your "will" had no part in that decision. So it is with all of our other choices: not one of them results from a free and conscious decision on our part. There is no freedom of choice, no free will. And those New Year's resolutions you made? You had no choice about making them, and you'll have no choice about whether you keep them.

The debate about free will, long the purview of philosophers alone, has been given new life by scientists, especially neuroscientists studying how the brain works. And what they're finding supports the idea that free will is a complete illusion.

The issue of whether we have of free will is not an arcane academic debate about philosophy, but a critical question whose answer affects us in many ways: how we assign moral responsibility, how we punish criminals, how we feel about our religion, and, most important, how we see ourselves — as autonomous or automatons.

But before I explain this, let me define what I mean by "free will."

I mean it simply as the way most people think of it: When faced with two or more alternatives, it's your ability to freely and consciously choose one, either on the spot or after some deliberation. A practical test of free will would be this: If you were put in the same position twice — if the tape of your life could be rewound to the exact moment when you made a decision, with every circumstance leading up to that moment the same and all the molecules in the universe aligned in the same way — you could have chosen differently.

Now there's no way to rewind the tape of our lives to see if we can really make different choices in completely identical circumstances. But two lines of evidence suggest that such free will is an illusion.

The first is simple: we are biological creatures, collections of molecules that must obey the laws of physics. All the success of science rests on the regularity of those laws, which determine the behavior of every molecule in the universe. Those molecules, of course, also make up your brain — the organ that does the "choosing." And the neurons and molecules in your brain are the product of both your genes and your environment, an environment including the other people we deal with. Memories, for example, are nothing more than structural and chemical changes in your brain cells. Everything that you think, say, or do, must come down to molecules and physics.

True "free will," then, would require us to somehow step outside of our brain's structure and modify how it works. Science hasn't shown any way we can do this because "we" are simply constructs of our brain. We can't impose a nebulous "will" on the inputs to our brain that can affect its output of decisions and actions, any more than a programmed computer can somehow reach inside itself and change its program.

'Meat computers' And that's what neurobiology is telling us: Our brains are simply meat computers that, like real computers, are programmed by our genes and experiences to convert an array of inputs into a predetermined output.

Recent experiments involving brain scans show that when a subject "decides" to push a button on the left or right side of a computer, the choice can be predicted by brain activity at least seven seconds before the subject is consciously aware of having made it. (These studies use crude imaging techniques based on blood flow, and I suspect that future understanding of the brain will allow us to predict many of our decisions far earlier than seven seconds in advance.) "Decisions" made like that aren't conscious ones. And if our choices are unconscious, with some determined well before the moment we think we've made them, then we don't have free will in any meaningful sense.
Heinrich admits killing Jacob Wetterling


Heinrich detailed how he kidnapped and killed Jacob. Heinrich told the courtroom how on that fateful night he was driving through St. Joseph around 8 p.m. when he noticed three boys on bikes with a flashlight. He pulled into a driveway after they passed him.

Heinrich testified that he jumped out of the car wearing a mask and holding a .38 revolver. He ordered them into a ditch and asked their names and ages. "I told Trevor and Aaron to run away, don't look back or i'll shoot. " Heinrich recalled.

The defendant described how he handcuffed Jacob and put him in the passenger seat of his car. Heinrich had a police scanner in his vehicle, and after hearing police respond to the kidnapping he decided he'd better drive back to Paynesville. He recalled Jacob at one point asking him, "What did I do wrong?" He took a series of backroads that wound through small central Minnesota communities until he reached a sewage pond road and drove to a gravel pit by a grove of trees. There, he forced Jacob to disrobe and masturbate him until the boy told Heinrich he was cold.

Jacob asked to be taken home, but Heinrich recalls telling the boy it was too far. On the way back to the car he noticed a police cruiser on the road nearby. Heinrich said he panicked, pulled his revolver and put two rounds inside. "I raised the revolver to his head, clicked once with no bullet in the chamber. Shot him twice after that. " He admitted firing into the back of Jacob's head after asking the boy to turn around so he could go to the bathroom.

The details got worse. Heinrich described how Jacob was still crying after the first shot, so he fired again. After driving back to his home and staying for a couple of hours, Heinrich testified that he returned to the gravel pit and dragged him approximately 100 yard to bury him. The defendant says his own shovel was too small so he stole one from the construction site. He then spotted a Bobcat digger with keys in it, and used the machine to dig a large grave for Jacob. When asked by a prosecutor if he returned to the burial site one year later, Heinrich said yes, and detailed how he dug up and collected Jacobs remains and put them in a garbage bag. He moved them to an unspecified site nearby. " Found a spot and dug a hole with a trenching tool about 2 feet deep. and put the bones in that hole and the jacket on top," he told the court.
Comment: Top image from Kare11 article (screen snap). Source of Jacob Wetterling = Missing Persons of America . Human brain source

What would morality look like without free will?


Coyne argues that people have no choice over their behaviors because that is simply the output of their genetic material and environment. If this is the case, then there is no sense of moral responsibility. As Coyne says, Bernie Madoff, who scammed people for millions, is no different from Nelson Mandela, who helped bring freedom to a nation. Because this is the case, we cannot punish based on personal choice. We should, however, punish based on future deterrent. Here is where Coyne’s argument falls apart.

Why? Why should we deter someone from murdering or committing other crimes? Coyne says we should continue to punish criminals as that adds to the environment of others and can make them choose differently later. But the question remains as to why we would want them to choose in a certain way. If there is no sense of morality, as it would only be the by-products of our brains, why would we care what other’s do, particularly if it does not effect us personally?

Final comments: I have atheist friends and family who are fine, moral individuals. So I am not saying that atheists are killers! But there is a disconnect for atheists because if there is no soul, no moral absolutes based upon a higher Being; what makes the Monsters' acts immoral?! Wiki on Jerry Coyne here.


"Buddy Fox" calls into Ruby Tuesday earnings call

Ruby Tuesday's (RT) CEO JJ Buettgen on Q4 2016 Results - Earnings Call Transcript


Operator [Operator Instruction] Our next question comes from Buddy Fox with Geneva Roth Holding Corporation.

Buddy Fox I just have one question. Do you think your revenues are negatively impacted by Harambe’s death and if yes, do you have any plans to mitigate it?

JJ Buettgen Excuse me, can you repeat your question please? Impacted by what?

Buddy Fox By Harambe’s death and if yes, do you have plans to mitigate it?

JJ Buettgen I am sorry, I don’t know we have a bad connection, I couldn’t quite hear the question.

Operator He has lost connection. We will turn to Bryan Hunt with Wells Fargo.
Comment: Image sources: Ruby Tuesday, Harambe. See also Twitter link and related article.


The Christian Citizen - Consider Ourselves Exiles

With the quadrennial election cycle once again upon us, many Christians are in a lather about this side or the other and whether this year there even is a legitimate choice.

For the brief time you read this blog, pretend that you are disenfranchised and have no vote at all!

As an aside, one's vote seems of little consequence anyway. I have a sister in Texas who has voted Democratic in the last several Presidential elections - but the Texas vote is overwhelmingly Republican and her vote is virtually meaningless. In Minnesota my Republican Presidential ballot is likewise of little importance in an overwhelmingly Democratic state.

Consider as well that in many places Christians have no vote and for many centuries Christians had no opportunity at all to vote!

[I am not advocating not voting! I have voted in every election since 1972 (the first year I was eligible!). I will vote this year as well!]

A common view is that the United State was birthed as a Christian nation and that many of the so-called founding Father's were Christian. Certainly there was a strong Christian influence by some of the founders: Consider the Mayflower endeavor (not bragging, but I am a descendant of both William White and Stephen Hopkins), the Winthrop Fleet (see John Peat on this manifest), and the Providence Plantations - all Christian endeavors! As to the founding Father's: this article suggests that while they were Deists, they probably not Christians. But suffice to say that our country is based on a Judeo-Christian heritage and specifically not a Muslim-Sharia law heritage!

If one takes "Christian" seriously, it's fairly obvious that real, God-fearing, Jesus Christ followers are a small minority among us! (Oh yes there are the Pew surveys such as this which state that 70% of us are Christian. But Christian is so loosely defined to make that statistic meaningless!).

How Christian were we - say in Colonial times? Well it appears that Christian lingo was common but Christian adherence was not.

Often Christians express that our faith is persecuted here in the United States. I would like to disabuse that idea with these facts:

  • If you donate to your church, you receive a tax deduction (one has to itemize to benefit from this).
  • Your church in all likelihood does not pay property tax. (The Little Flowers Montessori School near my home pays, $ 27,500 per year on their 4 acres. My church pays zero for our 22 acres.)
  • Your ordained pastor receives a parsonage allowance that enables him to eschew taxes on a large part of his income.
  • We have freedom of assembly, freedom of speech, and freedom of religion. 
Often I hear that things are changing for the worse for Christians. Is that so? Well maybe yes and maybe no:

  1. a return to a pre-Moral Majority separation of church and politics
  2. a Benedictine model
  3. the Jeremiah option
Here's my take on the three models:
  1. The moral majority model represents the church in bed with the Republican party. It's zenith was with Ronald Reagan. Christians would help elect him and with his election and his Supreme Court appointments, Roe v Wade would be overturned. My assessment is that it was a prostitution of the church that diluted the message of the Gospel. As an aside I voted for Reagan twice! Since Reagan, Evangelicals have been searching for one to take up the Reagan mantle and go forth. Every quadrennial Evangelicals wait for their candidate to announce his born-again-ness and rally behind him. The model seemed reasonable but has been a complete failure.
  2. The Benedictine model is in my view basically an isolation approach. 
  3. The Jeremiah option comes from Jeremiah's letter to the exiles in 29:1-9. See also Jeremiah 40:9.
This is what the Lord Almighty, the God of Israel, says to all those I carried into exile from Jerusalem to Babylon: “Build houses and settle down; plant gardens and eat what they produce. Marry and have sons and daughters; find wives for your sons and give your daughters in marriage, so that they too may have sons and daughters. Increase in number there; do not decrease. Also, seek the peace and prosperity of the city to which I have carried you into exile. Pray to the Lord for it, because if it prospers, you too will prosper.”
The article linked above suggests these five lessons:
  1. Be Faithful in the Ordinary Things of Life
  2. Engage Babylon, Do Not Withdraw
  3. Be Discerning
  4. Be People of Hope
  5. Things Are Not Out of Control
What follows are my comments on citizenship with appropriate Scriptures:

  1. If one is married, endeavor to have a strong Biblical marriage. Ephesians 5:22-33
  2. If unmarried, remain sexually chaste
  3. If a parent, raise one's children. Ephesians 6:1-4
  4. Earn a living. Don't be a slacker. Ephesians 4:28 and 2 Thessalonians 3:10
  5. Respect established authority and pay taxes. Romans 13:1-7
  6. Pray for authorities. 1 Timothy 2:1-3
  7. Be faithful in gathering with God's people in one's church
  8. Be a witness

Friendlier Policing? Eliminate the Revenue Incentive

Several obvious first points:
  • Mayberry is a fictional place!
  • Andy Taylor is a fictional Sheriff!
  • We must not be naive about the nature of man (we are all sinners!)
  • Nor should we be Pollyannaish about crime in the United States
  • Policing is a difficult and dangerous job.
  • Additionally we must have respect for authorities. Romans 13 is clear: "They are God’s servants, agents of wrath to bring punishment on the wrongdoer"
This also needs to be said that the nature of this post is not anti-cop! I have had cop-friends, and I had a cousin who was a cop! I've been helped by cops and I appreciate them.

While admitting that feelings may be notoriously incorrect, I have a sense that policing today is quite a bit different than policing a generation ago! My sense is that policing has lost the concept of proportional punishment. An anecdote: Year's past, I've been stopped and reminded by a policeman that a tail light was out. Today that former friendly reminder (or worse a warning ticket) is now a full stop! While not all the facts are in, this was apparently the case with Philando Castile who was stopped for a broken tail light (this article disputes this). The Alton Sterling situation was about CDs being sold in a parking lot (again with the caveat that all the facts aren't in!). The Eric Garner case was about the sale of untaxed cigarettes.

In 2011, I was arrested (read about by clicking the link). I'm biased but frankly I think that the policing was out of proportion (read and judge for yourself!).

As someone with a degree in economics, I often think through that lens. And with regard to policing, some have written about this:
  1. Ferguson shows how a police force can turn into a plundering ‘collection agency’
  2. Policing and Profit
  3. Police Chief Magazine: Generating New Revenue Streams
  4. Police Departments are Over-funded: It’s All About Priorities
Several quotes:
Of all the harrowing stories buried inside the Justice Department’s report on the Ferguson Police Department, one of the most illustrative begins with an illegally parked car. The year was 2007. And a Ferguson officer who noticed the illegally parked vehicle issued its driver, an African American woman, two citations and a ticket for $151. To the driver, who had bounced in and out of homelessness, the fine was draconian. She couldn’t pay it in full. So over the next seven years, the woman missed several deadlines and court dates. That tacked on more fees, more payment deadlines, more charges. She ultimately spent six days in jail. All because she didn’t park her car correctly. As of December 2014, the woman had paid the city of Ferguson $550 resulting from a $151 ticket. And she still owes $541. [article 1]

In Ferguson, residents who fall behind on fines and don’t appear in court after a warrant is issued for their arrest (or arrive in court after the courtroom doors close, which often happens just five minutes after the session is set to start for the day) are charged an additional $120 to $130 fine, along with a $50 fee for a new arrest warrant and 56 cents for each mile that police drive to serve it. Once arrested, everyone who can’t pay their fines or post bail (which is usually set to equal the amount of their total debt) is imprisoned until the next court session (which happens three days a month). Anyone who is imprisoned is charged $30 to $60 a night by the jail. If an arrestee owes fines in more than one of St. Louis County’s eighty-one municipal courts, they are passed from one jail to another to await hearings in each town. The number of these arrests in Ferguson is staggering: in 2013, Ferguson’s population was around 21,000 and its municipal court issued 32,975 arrest warrants for nonviolent offenses. Ferguson has a per capita income of $20,472, and nearly a quarter of residents and over a third of children live below the poverty line. Court fines and fees are Ferguson’s second-largest source of income, generating over $2.4 million in revenue in 2013. [article 2]

[Article 3: Expresses the budgetary pressures of one police department - West Covina, California. My point of including this article is not to ridicule the ideas presented (some which I would consider valid), but to highlight the incentive of "profit potential"] The common reaction to a budget crisis is reducing personnel and cutting services. The focus of this article is to provide police agencies with an alternative to personnel and service reductions. This alternative could help the survival of a city and maintain or expand police service through generating new revenue streams as a proactive approach to meet the fiscal crisis of today and the uncertain future of tomorrow.

My appeal is simple: Take the profit incentive out of policing and all communities will in time experience better community policing!


Robocall options for the IPhone

How to Stop Robocalls … or at Least Fight Back (Pestering prerecorded calls are reaching record highs, and even hit our cellphones; here are ways you can try to stop them)


We are in the midst of a robot apocalypse. Instead of wiping us out with liquid metal lasers guns, they’re crushing us with robocalls, those unwanted, pre-recorded intrusions into our private lives. You’re not safe anywhere, not even on your once-sacred smartphone.

Comment: Image source. Links to several of them: