Tuesday, February 3, 2009

Wells Fargo cancels junket at Wynn Resorts

Wells Fargo is now getting shaken, as Mish Shedlock has taken them out to the woodshed, with this scathing analysis of their balance sheet. It's a must read.

So Wells Fargo counter punches by canceling their junket to Wynn Las Vegas! They had booked 12 nights at the Wynn and Wynn Encore for it's top mortgage officials, and a 40 person gathering for it's insurance executives at Mandalay Bay!

Steve Wynn counter punches the Wells Fargo cancellation, by cutting pay for it's salaried employees, shortening work weeks, and ending bonus accruals and 401K matches. He says these moves will save $75-$100 million.

But Steve thanks Wall Street, for buying the 8 million shares it sold at $43.50 when it was added to the S&P 500 in November.

What's next for WYNN? Will he do as Elton John, and finally cut back on fresh flowers?

It looks like Wynn financed his flowers with $350 million from shareholders, just like Wells Fargo financed their now cancelled trip with $25 billion of taxpayer money!

No comments: