Home Videos Wells Fargo’s Stumpf on the Volcker Rule

    Wells Fargo’s Stumpf on the Volcker Rule

    The Volcker Rule should not hurt customers, says John Stumpf, Wells Fargo chairman/CEO.

    welcome back to squawk. final thoughts with our guest host, wells fargo chairman and ceo john stumpf. volcker rule. we haven’t talked about it yet. does it impact you in a meaningful way and do you have a strong view? i have a view that it should not hurt customers. i can’t imagine that’s the intention of volcker or the congress. but the way the rules are coming down, they’re very broad in their prohibitions and very narrow in their permissions. let me give you one example that would be impacted. when we make somebody a mortgage, we give them a rate lock. in other words, we give them a free rate lock for 60 or 90 days. if rates go up even by a quarter point, that’s thousands of dollars over the life of a loan. if this gets implemented the wrong way, we might not be able to do that. because you won’t be able to buy swaps? exactly. we hedge that. we swap that. or else we have to have such a gigantic group of, you know, consultants and accountants and attorneys making sure that that doesn’t fit. so that’s just one small example of how — but you’re not in the proprietary trading business otherwise. it’s almost zero for us. we don’t have, like, a group that says proprietary trading — you have things that would qualify for that. yeah. or things like helping my brother with his corn crop, hedging that. or even managing our interest rate sensitivity we talked about before. you know, assets and liabilities. we use instruments for that. that reduces risk. that doesn’t improve the increased risk. i think this is a — you know, a big solution we hope you’ll come back again soon. becky and joe, andrew, thank

    NO COMMENTS

    The Life and Career of Charlie Munger

    You can learn from Charlie Munger firsthand via this incredible ebook and over a dozen other famous investor studies by signing up below:Charlie is more than just Warren Buffett’s friend and Berkshire Hathaway’s Vice Chairman – Buffett has actually credited him with redefining how he looks at investing. Now you can learn from Charlie firsthand via this incredible ebook and over a dozen other famous investor studies by signing up below:

    • Learn from the best and forever change your investing perspective
    • One incredible tidbit of knowledge after another in the page-turning masterpiece of a book
    • Discover the secrets to Charlie’s success and how to apply it to your investing

    Never Miss A Story!

    Subscribe to ValueWalk Newsletter. We respect your privacy.

      Subscribe

      We won’t send you spam. Unsubscribe at any time.
      ×
      Exit mobile version