The Bad News Report

[Cadi40]

9 hours ago, Dale said:

Never mind Brooklyn, Nashville is killing us design-wise.

Not a fan of the Nashville v.s. Charlotte debate. Nashville may have the “It” vibe that apparently everyone cares about all of the sudden but either way Charlotte is getting there. Nashville is peaking and Charlotte is on the rise.

[Nick2]

I thought Levine's garage is supposed to have rap around apartments that just got updated with more height.

[15895]

2 hours ago, Cadi40 said:

Not a fan of the Nashville v.s. Charlotte debate. Nashville may have the “It” vibe that apparently everyone cares about all of the sudden but either way Charlotte is getting there. Nashville is peaking and Charlotte is on the rise.

my opinion on that:

Charlotte started booming, then Austin started booming, now Nashville.

 

Charlottes been booming since 2005 (minus a couple years in between). It’s old news. 

I mean.  The rage forever was Austin. Everything Austin. Now I rarely hear about Austin. And both cities continue to grow just as fast if not faster than during our turn in the spotlight.

 

[Cadi40]

36 minutes ago, AirNostrumMAD said:

my opinion on that:

Charlotte started booming, then Austin started booming, now Nashville.

 

Charlottes been booming since 2005 (minus a couple years in between). It’s old news. 

I mean.  The rage forever was Austin. Everything Austin. Now I rarely hear about Austin. And both cities continue to grow just as fast if not faster than during our turn in the spotlight.

 

https://www.bisnow.com/charlotte/news/construction-development/the-new-it-city-does-charlotte-beat-nashville-81423

”While Nashville may be peaking, Charlotte is on the rise”

Just my opinion - Nashville has more entertainment and might have a little more buzz but who’s to say Charlotte won’t get that ‘it’ factor? Nashville is not so much a business city as much as it is an eintertainment city, With that said, Charlotte is a larger business city and the more it grows the more entertainment and culture it will have to offer while still having a business and professional ego. It’s easier to get more entertainment and establish a better vibe then it is to become a more business oreiented and professional city. 

 

 

 

Edited January 27, 2018 by Cadi40

[jtmonk]

On 1/26/2018 at 9:40 PM, Nick2 said:

I thought Levine's garage is supposed to have rap around apartments that just got updated with more height.

He is, and we had a discussion about it a few pages back.  Basically they're are redesigning it to be a few stories taller and had to do some re-engineering/design work since they will use concrete instead of wood for construction... at least that is what I recall.  Should be finished with the re-engineering in a few more months and I think construction could start late summer early fall?  Anyone with more information please correct me if I'm wrong.

[Scribe]

54 minutes ago, jtmonk said:

they will use concrete instead of wood

I thought it was steel!

[jtmonk]

1 hour ago, Scribe said:

I thought it was steel!

It very well could be, we'll have to wait until the new construction documents come out to know for sure.

[Nick2]

So hopefully this will get underway soon to be a new addition to quality uptown growth rather than just a deck or even worse, a surface parking lot.

[KJHburg]

Wells Fargo news from the Fed more penalties.  https://www.bizjournals.com/sanfrancisco/news/2018/02/02/wells-fargo-bank-federal-reserve-scandal-wfc.html?ana=e_sfbt_bn_breakingnews&u=oAaDx%2B74FoP4qOJ%2By4AU6dhJPpc&t=1517621475&j=79802341

They need to announce a restructuring and move away from California as that is the source of most of these scandals and get a fresh start here in Charlotte. 

[CLT2014]

http://www.charlotteobserver.com/news/business/banking/article199311474.html

MassMutual is consolidating offices from across the country back in New England. 

In Charlotte, the impact is 300 positions that MetLife sold to MassMutual (prior to spinning off most of the Charlotte operations into Fortune 500 CLT based Brighthouse Financial), will be eliminated or moved to New England. MassMutual did not have an office in the Charlotte area prior to absorbing the adviser network from MetLife in that sale. 

Numerous other offices of MassMutual are being closed across the county. Connecticut, New Jersey, Pennsylvania, and Tennessee will also have office closures. 

Barrings Capital in Uptown is not impacted as they operate rather independently, but are wholly owned by MassMutual. The Brighthouse Financial HQ in Ballantyne is not impacted. 

Edited February 9, 2018 by CLT2014

[KJHburg]

^^^ That is bad news and very hopeful that Allstate which is adding 2250 jobs just like these in Charlotte will swoop in and pick of many of these employees (a friend of mine works at MassMutual there) as most will NOT move to Massachusetts I can assure you.  

Here is the Allstate announcement 

https://www.bizjournals.com/charlotte/news/2017/08/09/allstate-to-bring-2-250-jobs-to-charlotte-over-3.html

Here is the MassMutual article on the closure

https://www.bizjournals.com/charlotte/news/2018/02/09/massmutual-office-in-charlotte-shuttering-hundreds.html?ana=e_clt_bn_newsalert&u=oAaDx%2B74FoP4qOJ%2By4AU6dhJPpc&t=1518207942&j=79923611

If you look at the job titles the losses could be absorbed by one company alone Allstate. 

[KJHburg]

I have said repeatedly Wells Fargo should leave California. Do this: announce a management shakeup and restructuring move the HQ to Charlotte. Most if not all these problems with the bank originated in Wells California operations.  Head east stagecoach!  https://www.bizjournals.com/charlotte/news/2018/03/05/california-treasurer-wells-fargo-ceo-tim-sloan-wfc.html

[J-Rob]

33 minutes ago, KJHburg said:

I have said repeatedly Wells Fargo should leave California. Do this: announce a management shakeup and restructuring move the HQ to Charlotte. Most if not all these problems with the bank originated in Wells California operations.  Head east stagecoach!  https://www.bizjournals.com/charlotte/news/2018/03/05/california-treasurer-wells-fargo-ceo-tim-sloan-wfc.html

While unlikely, I do think this is a good idea.  Someone on UP needs to find a way to make this suggestion.  Maybe one of our resident writers could pen an article for kicks and giggles? @Jayvee @ricky_davis_fan_21

[KJHburg]

All of the recent sales scandals have originated in the western operations of Wells ie the legacy Wells not the Wachovia.  Wachovia made a terrible bet buying Golden West and their huge adjustable mortgage portfolio also based at the time in California.  Head east Stagecoach and reinvent yourself here in Charlotte.  I know the current CEO commutes from LA but if they are trying to push him out how about someone from Charlotte or who is based here?  

[CLT2014]

13 minutes ago, KJHburg said:

All of the recent sales scandals have originated in the western operations of Wells ie the legacy Wells not the Wachovia.  Wachovia made a terrible bet buying Golden West and their huge adjustable mortgage portfolio also based at the time in California.  Head east Stagecoach and reinvent yourself here in Charlotte.  I know the current CEO commutes from LA but if they are trying to push him out how about someone from Charlotte or who is based here?  

If the current CEO is pushed out, only an outsider to the company will be considered an acceptable choice to those advocating for change. That will likely involve a nation-wide search and a break in Wells culture from grooming a CEO and promoting within. John Shrewsberry (CFO), is likely "next in line" for CEO under Wells culture, but would still be unacceptable to advocates. 

Of the 10 Executive Officers at Wells, 7 are based in San Francisco, 2 are based in Charlotte, and 1 is based in NYC. I do not think the 2 Charlotte based execs would be considered for CEO. If they poached a top Charlotte exec, like Cathy Bessant at BofA, for CEO of Wells, then you might see a shift in power east. 

Edited March 5, 2018 by CLT2014

[J-Rob]

9 minutes ago, CLT2014 said:

If the current CEO is pushed out, only an outsider to the company will be considered an acceptable choice to those advocating for change. That will likely involve a nation-wide search and a break in Wells culture from grooming a CEO and promoting within. John Shrewsberry (CFO), is likely "next in line" for CEO under Wells culture, but would still be unacceptable to advocates. 

Of the 10 Executive Officers at Wells, 7 are based in San Francisco, 2 are based in Charlotte, and 1 is based in NYC. I do not think the 2 Charlotte based execs would be considered for CEO. If they poached a top Charlotte exec, like Cathy Bessant at BofA, for CEO of Wells, then you might see a shift in power east. 

Not to put words in @KJHburg's mouth, but I think that is kind of the point.   They need an intentional shift away from the status quo.  Why not reinvent yourself in the city where your largest workforce is; and in a city that (like San Francisco) is deep in talent, but also much cheaper to operate in?

[deleted]

25 minutes ago, KJHburg said:

All of the recent sales scandals have originated in the western operations of Wells ie the legacy Wells not the Wachovia.  Wachovia made a terrible bet buying Golden West and their huge adjustable mortgage portfolio also based at the time in California.  Head east Stagecoach and reinvent yourself here in Charlotte.  I know the current CEO commutes from LA but if they are trying to push him out how about someone from Charlotte or who is based here?  

Respectfully, why does it matter?  They are huge here, committed to the city and philanthropic.  How much would change if the senior management team lived here?  

[KJHburg]

^^^ Yes @J-Rob that is what I am trying to say.  Wells is an excellent corporate citizen in this city and I have many many friends working for them. 

Why would I think they should reinvent themselves here?  1. Banking bragging rights for Charlotte  (we care about that here not at Wells c-suite)  2. Not being  an issue in statewide governors race like they are in California  3. Shows Fed regulators they are shaking things up 4. new attitudes and signals to all employees about the change and how this behavior will not be tolerated. 

Will it get rid of all their problems no?  But it would show Wall Street, DC regulators, Sacramento they are interested in change to get back on track.  Wells is not leaving California only the top decision making much like Nationsbank and BankAmerica did when they merged and it shifted east. 

Examples of California targeting

https://www.sfgate.com/business/article/Wells-Fargo-could-face-sanctions-from-California-12414140.php

More reforms needed 

https://www.sfgate.com/business/article/Fed-chief-Wells-Fargo-needs-significant-12723953.php

Edited March 5, 2018 by KJHburg
link added

[kermit]

2 hours ago, J-Rob said:

but also much cheaper to operate in?

Honest question here for the group: how much does the cost of doing business really matter for headquarters functions?

The  importance of low cost of living for mid-level employees and lower seems unambiguous. However, I would think that the C-suite guys and the next layer of VP's probably care much more about things like Michelin stared restaurants and private schools than the cost of office space.   How much does Wells' California St tower in San Francisco really impact the firms bottom line? Don't forget the building is also likely a wholly-owned investment for Wells.  What would Wells' shareholders really gain from moving those guys to "Mayberry"? Office space costs might be reduced slightly for housing the execs, but likely at the cost of investment returns on the building.  The BoA post-recession experience did reveal that Charlotte had a tough time attracting C-suite guys -- should this handicap be taken into account when making cost of doing business calculations?

[I understand and agree with KJHburg's culture argument, this question only refers to the cost portion of the discussion]

Edited March 5, 2018 by kermit

[J-Rob]

^I believe Brian Moynihan (BofA CEO) is based out of Boston, so if any given executive has to have Michelin starred restaurants, they don't have to live in Charlotte even if the headquarters moves.  That said, Wells has such a bad rep with the state of California (see KJHburg's links) that it makes sense that they find someone humble enough to live in Charlotte and reinvent the company.  Besides, while we don't have a bunch of Michelin starred restaurants, Charlotte is a different city than it was in 2008.

 

I think the lower cost of living comes into play if you slowly start transition jobs away from the high-cost (labor and rents) bay area to Charlotte.  They are already doing this to some extent, but designating Charlotte as headquarters would be a perception win if they can paint it as a culture evolution.  While C-suite salaries are exorbitant, I don't think any UPer is foolish enough to think that making the c-suite move is where the cost savings are.  The cost savings are in people below the c-suite moving; which would reinforce the idea of "new" Wells Fargo based in Charlotte.  If the c-suite, or a portion of the c-suite, moves too, it makes the case for a "new" Wells Fargo even better.

 

Edited March 5, 2018 by J-Rob

[cjd5050]

4 hours ago, kermit said:

Honest question here for the group: how much does the cost of doing business really matter for headquarters functions?

I think that would come down to how much of a cost variance.  No?   

I love the idea of WF moving their HQ and leadership here.  But if that happens, it will be over reform optics rather than cost savings I would assume.  

 

[kermit]

14 minutes ago, cjd5050 said:

I think that would come down to how much of a cost variance.  No?   

I love the idea of WF moving their HQ and leadership here.  But if that happens, it will be over reform optics rather than cost savings I would assume.  

 

Yea, this is certainly true. But even if the variance on housing (meaning providing office space) for the C-suite is 100% over budget its still a miniscule portion of Wells' operating costs.

Fundamentally I agree, a move of the exec corps to CLT would have to be more about optics than costs. I just wanted to ask the question of how much costs matter in this context since it seems unlikely these guys would accept a pay cut to be domiciled in Charlotte. 

Edited March 5, 2018 by kermit

[cjd5050]

13 hours ago, kermit said:

Yea, this is certainly true. But even if the variance on housing (meaning providing office space) for the C-suite is 100% over budget its still a miniscule portion of Wells' operating costs.

Fundamentally I agree, a move of the exec corps to CLT would have to be more about optics than costs. I just wanted to ask the question of how much costs matter in this context since it seems unlikely these guys would accept a pay cut to be domiciled in Charlotte. 

 

So here is maybe a different way to look at the same question.  Just how much of a gap is there really between San Francisco and Charlotte?   I get that one metric might be Michelin starred restaurants but there are none for 2018 in Los Angeles, Las Vegas and New Orleans.  Does this mean that LA can't compete for C-level with San Fran?  Heck, it looks like only 3 regions (NYC, Chicago and SF) have these.   I know the culture is not comparable between cities like SF and Charlotte but how big is that gap today compared to 1990?  How much of that gap has been reduced in the last 30 years or so?  What will it look like in 10 or 20 years.  

I know banking/finance is focused on the coasts but it's not like fortune 100 C-level executives only live in these places.  The C-level for US Bank seems to do OK in Minneapolis, PNC works in Pittsburgh and BB&T works in tiny Winston.  Maybe the issue for WF is that they have too many executives who care about Michelin starred restaurants, country clubs and private schools rather than keeping their employer out of hot water and maybe a move to Mayberry is just what the doctor ordered to get the company focused on its primary objective...that being a positive return and risk mitigation for it's shareholders.  

 

 

 

 

Edited March 6, 2018 by cjd5050

[KJHburg]

Dear Wells Fargo,

Please move your Headquarters here no matter how small or large it is.   How can you put up with this?  "Death spiral??"

KJ

https://www.bizjournals.com/charlotte/news/2018/03/16/california-treasurer-takes-aim-at-wells-fargo-ceo.html?ana=e_ae_set2&s=article_du&ed=2018-03-16&u=oAaDx%2B74FoP4qOJ%2By4AU6dhJPpc&t=1521228854&j=80541011

[kermit]

26 minutes ago, KJHburg said:

Dear Wells Fargo,

Please move your Headquarters here no matter how small or large it is.   How can you put up with this?  "Death spiral??"

KJ

https://www.bizjournals.com/charlotte/news/2018/03/16/california-treasurer-takes-aim-at-wells-fargo-ceo.html?ana=e_ae_set2&s=article_du&ed=2018-03-16&u=oAaDx%2B74FoP4qOJ%2By4AU6dhJPpc&t=1521228854&j=80541011

Yea, but the really bad news is the investigation of WF is now federal as well: https://www.wsj.com/articles/justice-department-widens-wells-fargo-sales-investigation-to-wealth-management-1521215076