WEBVTT - Morgan Stanley Shares Soar on Trading Surge 0:00:02.440 --> 0:00:09.119 Bloomberg Audio Studios, podcasts, radio news. You're listening to the 0:00:09.160 --> 0:00:13.280 Bloomberg Intelligence Podcast. Catch us live weekdays at ten am 0:00:13.360 --> 0:00:15.840 Eastern on fo card Playing and broun Otto with the 0:00:15.840 --> 0:00:19.720 Bloomberg Business App. Listen on demand wherever you get your podcasts, 0:00:19.960 --> 0:00:22.800 or watch us live on YouTube. 0:00:23.400 --> 0:00:25.759 Alex Deal, Paul Sweeney. We are live here at our 0:00:25.760 --> 0:00:26.640 Bloomberg and Active. 0:00:27.360 --> 0:00:27.960 You know where we are. 0:00:28.080 --> 0:00:30.680 No, we're not, Yeah, yeah, we are messaging. We're broadcasting 0:00:30.720 --> 0:00:33.720 live from the Wells Fargo Women in Leadership Summit at 0:00:33.800 --> 0:00:36.199 Kea Island, South Carolina, where they've gathered prominent women in 0:00:36.280 --> 0:00:38.800 leadership to engage in meaningful conversations. So we've had the 0:00:38.800 --> 0:00:41.320 benefit of chatting with a lot of those leaders here, 0:00:41.320 --> 0:00:44.800 both Wells Fargan from some of the other organizations gathered here. 0:00:44.840 --> 0:00:46.839 So we have some good conversations. I'll tell you. The 0:00:46.840 --> 0:00:49.440 other story of the day here from stock perspective is 0:00:49.520 --> 0:00:52.960 Morgan Stanley's John Tucker was just reporting some really strong numbers. 0:00:52.960 --> 0:00:54.360 I was looking at the results. I mean it was 0:00:54.360 --> 0:00:57.400 like the advisory business did well, the capital markets business 0:00:57.400 --> 0:00:59.480 did well. The wealth management business, which is such a 0:01:00.280 --> 0:01:02.600 part of that company, that did well. So the stock's 0:01:02.680 --> 0:01:04.760 up seven percent of fifty two week high. How about that, 0:01:05.040 --> 0:01:09.000 Alison Williams, she joins us She's covered Morgan Stanley forever. 0:01:09.120 --> 0:01:11.520 She used to work there back in the day, so 0:01:11.560 --> 0:01:14.399 she knows this company better than anybody. Allison. Was it 0:01:14.440 --> 0:01:16.880 as good as it appeared just reading through the you 0:01:16.880 --> 0:01:19.319 know kind of the report. It was good. 0:01:19.920 --> 0:01:23.280 But I think the real, uh, the real number that's 0:01:23.280 --> 0:01:26.160 giving investors confidence in our opinion, you know, is the 0:01:26.160 --> 0:01:32.120 wealth flows. So we've had some some uneven flows. Last 0:01:32.200 --> 0:01:35.400 quarter was was relatively weak, and I think the rebound 0:01:35.560 --> 0:01:38.960 this quarter maybe instilling a little bit of confidence. As 0:01:39.000 --> 0:01:44.360 you know, they are strong institutionally, but they have shifted 0:01:44.360 --> 0:01:47.840 their business over time to this, uh more towards the 0:01:47.840 --> 0:01:51.200 wealth business. Gorman had sort of put some aggressive targets 0:01:51.200 --> 0:01:54.440 out there before handing over the rains hits head pick and. 0:01:54.440 --> 0:01:55.880 So and so. 0:01:56.040 --> 0:01:59.680 To be clear, they really, you know, beat the numbers 0:01:59.760 --> 0:02:02.720 across the board. It was led by the institutional business. 0:02:02.720 --> 0:02:06.400 The equities trading business, in which they're relatively more skewed, 0:02:06.880 --> 0:02:10.640 did very well, partly because they are skewed to that business, 0:02:10.720 --> 0:02:14.280 and they did outperform. They had the best growth in 0:02:14.360 --> 0:02:17.920 trading and fees across the big sixties US banks, so 0:02:18.120 --> 0:02:21.639 upset across the board, benefiting from their mix, benefiting from 0:02:21.639 --> 0:02:24.920 their performance. But the wealth flows are really what the 0:02:24.919 --> 0:02:30.120 focus is for investors also because stocks are aiding their 0:02:30.160 --> 0:02:35.240 asset values, aiding fees and so that pre tax margin 0:02:35.320 --> 0:02:37.720 in the business. The other key metrics also doing better. 0:02:39.480 --> 0:02:42.760 Allison, how much can we expect the wealth assets to 0:02:42.960 --> 0:02:43.560 keep growing? 0:02:44.480 --> 0:02:48.639 So, you know, that is the multiple trillion dollar question. 0:02:48.800 --> 0:02:52.399 That is one of the aggressive targets that was put 0:02:52.440 --> 0:02:55.640 out there was to you know, sort of aggressively grow 0:02:55.639 --> 0:02:58.040 those assets, and it did seem like there were some 0:02:58.080 --> 0:03:01.880 pretty healthy market gains priced in. So the markets are 0:03:02.000 --> 0:03:07.720 delivering on those gains certainly this year, and the flows 0:03:07.760 --> 0:03:10.840 are also helping. But you know, we would want to 0:03:10.880 --> 0:03:15.440 see a couple more quarters of evidence that you know, 0:03:15.480 --> 0:03:18.960 they've really built the momentum there. We would expect mortgage 0:03:19.000 --> 0:03:23.760 family to have a strong quarter in wealth this quarter, 0:03:23.960 --> 0:03:28.040 just where stocks are. I mean, the global market cap 0:03:29.000 --> 0:03:31.840 reached a record high according to Bloomberg data at the 0:03:31.960 --> 0:03:34.720 end of the third quarter. And I would keep in 0:03:34.760 --> 0:03:39.720 mind that the pricing of those wealth fees really relates 0:03:39.760 --> 0:03:43.400 to the beginning of quarter value. So that's helpful for 0:03:43.440 --> 0:03:46.200 the bank for the fourth quarter as well. But you know, 0:03:46.320 --> 0:03:48.560 to your question, Alex, when we're thinking about the overall 0:03:48.600 --> 0:03:51.720 franchise and we're thinking about the growth, we should keep 0:03:51.760 --> 0:03:54.480 in mind that there is a big talent to the 0:03:54.520 --> 0:03:58.240 business this year from markets, and to some extent, the 0:03:58.280 --> 0:04:01.440 future growth is sowhat dependent on that. 0:04:03.720 --> 0:04:06.360 It just seems Alison, as I kind of read your 0:04:06.400 --> 0:04:09.240 research and yeah, I know, you guys have great data 0:04:09.240 --> 0:04:11.680 on market share across all business lines, it just seems 0:04:11.680 --> 0:04:15.080 like Morgan, Stanley, Goldman, Sachs, JP, Morgan, they're just kind 0:04:15.120 --> 0:04:18.080 of running away from everybody else on the planet. I mean, 0:04:18.360 --> 0:04:21.520 is that in fact the case they have been? 0:04:21.760 --> 0:04:24.880 And you know, whenever we expect you know that like okay, 0:04:25.320 --> 0:04:29.040 who's gonna who's left that can you know, blow up 0:04:29.080 --> 0:04:32.560 that's a technical term, if you will, and see some 0:04:32.640 --> 0:04:34.839 more share to these banks who are kind of running 0:04:34.839 --> 0:04:38.280 out of names. But if you think about, for example, 0:04:38.400 --> 0:04:43.279 what's happening in prime brokerage, right, so a lot of 0:04:43.320 --> 0:04:49.640 these larger institutional hedge funds that have you know, sort 0:04:49.680 --> 0:04:52.360 of these multipod shops, et cetera. To the extent that 0:04:52.400 --> 0:04:56.719 those bigger firms are gaining assets and doing better. That's 0:04:56.800 --> 0:05:01.799 benefiting you know, the leaders Morgan, Stanley, Goldman and JP Morgan, 0:05:01.839 --> 0:05:05.320 And so as the bigger clients get bigger, that's helping 0:05:06.160 --> 0:05:09.200 those firms as well. Within the trading business. The other 0:05:09.279 --> 0:05:11.640 thing I would point to is, you know, the investments 0:05:11.640 --> 0:05:15.360 in technology. These companies have made the investments in technology, 0:05:15.960 --> 0:05:18.520 and that's also helping them to win share in the 0:05:18.520 --> 0:05:19.480 trading businesses. 0:05:21.160 --> 0:05:24.000 I'm gonna steal Paul's comment slash question from earlier in 0:05:24.080 --> 0:05:25.919 the show saying, what does this all mean about the 0:05:25.960 --> 0:05:28.920 European banks? And are the US banks eating their lunch 0:05:29.040 --> 0:05:30.440 or is the lunch being spread around? 0:05:30.839 --> 0:05:35.520 So I think for this quarter the pie is getting bigger. 0:05:35.680 --> 0:05:39.640 So you know, in terms of whether eating lunch or pie, 0:05:40.400 --> 0:05:43.080 you know, the US banks have been gaining share against 0:05:43.120 --> 0:05:47.240 the Europeans for many many years. We think that does continue, 0:05:47.600 --> 0:05:50.279 but we think the pie is also bigger this quarter. 0:05:50.800 --> 0:05:54.360 And what we heard specifically was, you know, for example, 0:05:54.440 --> 0:05:58.040 JP Morgan, strength across regions, and what we heard from 0:05:58.080 --> 0:06:02.120 these banks was strength across derivative, prime and cash equity. 0:06:02.200 --> 0:06:05.120 So it is really broad based. The other thing that 0:06:05.160 --> 0:06:08.600 we think is notable for for UBS in particular is 0:06:08.640 --> 0:06:12.640 the strength in Asia. So not surprisingly we saw a 0:06:12.640 --> 0:06:16.679 pickup in activity in Asia that really benefited the banks, 0:06:16.760 --> 0:06:19.560 specifically called out by JP Morgan and Morgan Stanley. We 0:06:19.600 --> 0:06:21.320 think that that is really going to be a help 0:06:21.520 --> 0:06:22.240 to ubs. 0:06:24.520 --> 0:06:27.880 So how about on the cost side, Alison, was there 0:06:27.880 --> 0:06:30.360 any discussion about compensation? I feel like that's been less 0:06:30.360 --> 0:06:33.080 of a discussion. Point is I guess Wall Street compensation 0:06:33.160 --> 0:06:34.960 has become a little skewed, a little bit more towards 0:06:34.960 --> 0:06:36.960 the fixed and a little bit less on the variable. 0:06:37.160 --> 0:06:39.080 Yeah, so there's that element of it. 0:06:39.160 --> 0:06:39.440 Paul. 0:06:40.040 --> 0:06:41.600 You know, the two things I would point to is 0:06:41.680 --> 0:06:44.960 keep in mind compensation is a cruel, a cruel through 0:06:45.000 --> 0:06:48.320 the first three quarters, So to some extent it represents 0:06:48.320 --> 0:06:51.440 the business trends, and to some extent it represents how 0:06:51.440 --> 0:06:55.680 they think the full year we'll shake out. Secondly, you know, 0:06:55.839 --> 0:07:00.800 compensation for the investment banking fee side of things sort 0:07:00.839 --> 0:07:04.160 of was stickier than we would have expected on the downside, 0:07:04.160 --> 0:07:06.040 and I think that's because there was such a scramble 0:07:06.080 --> 0:07:11.040 to higher town in twenty twenty one, and investment banks 0:07:11.040 --> 0:07:14.360 have been talking about a recovery in that fee business 0:07:14.400 --> 0:07:17.680 for several quarters now, and so I think they that 0:07:17.680 --> 0:07:20.200 that COMP didn't come down as much, so there might 0:07:20.240 --> 0:07:22.920 not be as much of a search to the upside. 0:07:23.400 --> 0:07:26.480 But if we looked at costs, if we looked at COMP, 0:07:26.920 --> 0:07:29.640 you know, in general the profitability was good just because 0:07:29.640 --> 0:07:31.840 the upside to revenue was so much. Now, is that 0:07:31.880 --> 0:07:35.760 because the investment banks are keeping conservative and going to 0:07:35.760 --> 0:07:38.160 see how the fourth quarter shakes out in terms of 0:07:38.200 --> 0:07:39.640 the accrual basis? 0:07:40.560 --> 0:07:42.040 Is part of it because of the. 0:07:42.000 --> 0:07:46.120 Stickiness as I mentioned, But you did see COMP coming 0:07:46.160 --> 0:07:49.640 in sort of above estimates, just not as much as 0:07:49.680 --> 0:07:51.760 the revenue upside. 0:07:52.640 --> 0:07:55.360 All right, that's another good news for investors in these 0:07:55.360 --> 0:07:57.480 big investment banks. Alison Williams, thank you so much for 0:07:57.480 --> 0:07:59.840 taking the time even so helpful today and then really 0:07:59.840 --> 0:08:02.080 are the last week or so as she always is 0:08:02.120 --> 0:08:05.480 a record on these big banks report because our viewers, 0:08:05.480 --> 0:08:07.640 our listeners really want to get the latest on what's 0:08:07.640 --> 0:08:09.760 happened with the global of Wall Street, and Allison is 0:08:09.800 --> 0:08:12.600 the best out there. Alison Williams and Bloomberg Intelligence senior Aniold. 0:08:12.600 --> 0:08:15.280 She covers the global banks and SAM managers giving us 0:08:15.280 --> 0:08:17.000 the delay of the land on lorg Sally again a 0:08:17.040 --> 0:08:19.880 blowout quarter in the stock, hitting a fifty two week high. 0:08:20.120 --> 0:08:22.280 And you know in these big banks, investment banks report 0:08:22.320 --> 0:08:24.600 earnings the next day, what do they do? They go 0:08:24.840 --> 0:08:28.160 sell investment grade debt in the parkplace. And that is happening. 0:08:29.840 --> 0:08:33.720 You're listening to the Bloomberg Intelligence Podcast. Catch us live 0:08:33.800 --> 0:08:36.839 weekdays at ten am Eastern on Apple car Play and 0:08:36.840 --> 0:08:39.720 Android Auto with the Bloomberg Business app. You can also 0:08:39.840 --> 0:08:43.360 listen live on Amazon Alexa from our flagship New York station, 0:08:43.720 --> 0:08:46.480 Just say Alexa playing Bloomberg eleven thirty. 0:08:47.880 --> 0:08:50.720 All right, we're broadcasting live from the Bolls Fargo Women 0:08:50.760 --> 0:08:53.040 in Leadership something in Kiwa Islands, South Carolina. 0:08:53.120 --> 0:08:53.520 You know me? 0:08:53.600 --> 0:08:55.880 Well done here? Interesting? Oh yeah, I've been here once? 0:08:56.280 --> 0:08:56.560 Is that why? 0:08:56.600 --> 0:08:58.400 Yesterday so Wells we traveled. 0:08:58.160 --> 0:09:01.120 Yes, exactly what happens. That's HAPs when you don't fly private. 0:09:01.600 --> 0:09:04.640 Ah bummer, Yes, exactly, Paul's private was not working there. 0:09:04.720 --> 0:09:07.200 Daniel Squier's joint sess Managing Director and head of Diverse 0:09:07.320 --> 0:09:10.000 Segments at Wells Fargo, and Maria Menendez, a chief financial 0:09:10.000 --> 0:09:14.679 officer at g L Homes of Florida, down in Sunrise. 0:09:15.360 --> 0:09:18.800 Thanks for having us here. We appreciate it. Danielle, talk 0:09:18.800 --> 0:09:21.959 to us about what you guys are trying to accomplish 0:09:22.000 --> 0:09:23.960 here at this conference. I see, you know, a couple 0:09:24.040 --> 0:09:26.480 of conference rooms full of people. You guys are engaged 0:09:26.480 --> 0:09:28.240 in some big conversation. What are you trying to accomplish 0:09:28.280 --> 0:09:29.679 here at your conference here in Cuba? 0:09:29.720 --> 0:09:30.040 Awesome? 0:09:30.040 --> 0:09:31.960 Well, first, i'd say, Paul and Alex, thank you so 0:09:32.080 --> 0:09:34.560 much for joining us here and for having Marie and 0:09:34.600 --> 0:09:37.920 I on this show this morning. And two quick things, Paul, 0:09:38.040 --> 0:09:40.560 just from what you said before. One, I'd like you 0:09:40.600 --> 0:09:42.320 to know that I would also take the journey in 0:09:42.400 --> 0:09:42.839 that truck. 0:09:42.880 --> 0:09:44.320 I think that sounds really awesome. 0:09:44.679 --> 0:09:47.160 And two, I know First Union wheat first very well, 0:09:47.760 --> 0:09:49.920 having been with the company for twenty five years. So 0:09:51.080 --> 0:09:54.319 but with that, it's just such a wonderful event here 0:09:54.360 --> 0:09:56.960 are women in leadership sum. It is really a chance 0:09:57.040 --> 0:09:59.559 for all these women here today that come from various 0:09:59.600 --> 0:10:04.040 industry across the financial and the economic and the business 0:10:04.040 --> 0:10:07.840 space to really connect, to learn and to grow right. 0:10:07.920 --> 0:10:11.880 Come here, get great content, make connections that they otherwise 0:10:11.880 --> 0:10:15.079 wouldn't make with each other, meet people in different spaces 0:10:15.080 --> 0:10:18.000 and circles, and really go out and come back to 0:10:18.040 --> 0:10:21.079 their companies, come back to their communities and say, this 0:10:21.120 --> 0:10:23.679 is what we can all do together, so promote them 0:10:23.720 --> 0:10:27.400 as leaders and then also have Wells Fargo play their 0:10:27.400 --> 0:10:28.480 part in making that happen. 0:10:28.640 --> 0:10:30.720 So, Mario, what have you gotten out of it so far? 0:10:30.800 --> 0:10:32.320 We are you looking forward to get out of it? 0:10:32.840 --> 0:10:35.920 Well, I've really enjoyed meeting people outside of the industry 0:10:36.320 --> 0:10:38.640 we have. The circle of home building is very tight, 0:10:39.080 --> 0:10:42.600 so I've met people in other aspects of real estate 0:10:42.640 --> 0:10:47.839 as well as other functional departments and areas that are 0:10:47.880 --> 0:10:50.640 not just in the finance area. So that's been great, 0:10:50.720 --> 0:10:52.839 and I'm just looking forward to the next couple of 0:10:52.920 --> 0:10:55.680 days and getting to meet everybody else that I didn't 0:10:55.679 --> 0:10:57.439 get to meet at last night to great dinner. 0:10:57.480 --> 0:10:59.840 It was lovely, great weather, yeah. 0:10:59.679 --> 0:11:01.640 Exactly beautiful down here, folks. And if you haven't been 0:11:01.679 --> 0:11:03.080 to Kiwa, it is And if you kind of like 0:11:03.120 --> 0:11:05.040 the game of golf, it's fun. But it's the low 0:11:05.080 --> 0:11:08.320 country down here. Love it, this whole South Carolina kind 0:11:08.360 --> 0:11:11.240 of North Georgia. It's awesome. There's unlike any place else. 0:11:11.480 --> 0:11:14.360 They're deer here everywhere, dear like deer, and there are 0:11:14.440 --> 0:11:18.679 property humongous bugs. I'm just saying I or may have 0:11:18.760 --> 0:11:21.400 seen a few of them this morning in the hotel room. Mari, 0:11:21.440 --> 0:11:23.560 you talk to us about your business, talked us about 0:11:23.559 --> 0:11:26.920 the home building business. It's we hear so much about 0:11:27.160 --> 0:11:31.120 a housing shortage and housing affordability problem in this country. 0:11:31.160 --> 0:11:33.480 I'm not sure necessarily how we got here, but boy, 0:11:33.480 --> 0:11:35.720 you were here. How do you guys think about your business? 0:11:35.920 --> 0:11:37.360 Tell us about your business. 0:11:37.520 --> 0:11:40.199 Well, you can debate how many million, but the truth 0:11:40.320 --> 0:11:42.720 is there is a housing shortage, whether it's two million 0:11:42.800 --> 0:11:46.320 or four million. We are a very niche builder. We 0:11:46.400 --> 0:11:50.440 build only in Florida. We've just been through Hurricane Helene 0:11:50.440 --> 0:11:54.520 and Hurricane Milton, and we've come through it beautifully. Unlike 0:11:54.600 --> 0:11:57.840 what you see in the news new construction away from 0:11:58.120 --> 0:12:01.400 you know, the coastal era is very different when you're 0:12:01.520 --> 0:12:06.800 ten fifteen miles in and the home building industry, you know, 0:12:07.280 --> 0:12:10.559 like Wells Fargo has been with us through when we 0:12:10.559 --> 0:12:13.200 were a couple hundred million dollar company to being a 0:12:13.240 --> 0:12:16.760 two billion dollar company. So home building has gone through, 0:12:17.240 --> 0:12:20.319 you know, periods of normal growth. We survived the Great 0:12:20.360 --> 0:12:24.160 Recession and the frenzy that it was, the pandemic and 0:12:24.240 --> 0:12:27.200 post pandemic, and now we're hitting kind of a normalization 0:12:27.520 --> 0:12:33.280 period again. Interest rates have finally made the FED has 0:12:33.320 --> 0:12:36.319 made the first cut. Of course, that cut impacted bed 0:12:36.400 --> 0:12:40.320 funds rate. It's not the third year thirty year mortgage 0:12:40.360 --> 0:12:43.320 rates because people keep on making that connection. And of 0:12:43.360 --> 0:12:45.560 course that runs off the ten year treasury because that's 0:12:45.640 --> 0:12:47.280 kind of the normal life of somebody in a home. 0:12:47.720 --> 0:12:51.400 But what it did do is psychologically it's set the 0:12:51.520 --> 0:12:56.000 stage interest rates are coming down. We don't know the 0:12:56.040 --> 0:12:59.520 pace or the how quickly that if those are going 0:12:59.559 --> 0:13:02.920 to be twenty five basis point fifty, But what it 0:13:02.960 --> 0:13:05.280 does do for the home building industry is it says 0:13:05.280 --> 0:13:09.360 at some point that spread between the ten year treasury 0:13:09.520 --> 0:13:12.000 and the thirty year mortgage rates should normalize from being 0:13:12.280 --> 0:13:14.400 instead of being a one and a half percent to 0:13:14.480 --> 0:13:17.400 two percent, now that it's almost two point seven two 0:13:17.440 --> 0:13:22.240 point nine. So as demand comes down, the certainty around 0:13:22.280 --> 0:13:25.400 rates comes down, we'll see interest rates come down on 0:13:25.480 --> 0:13:28.720 the mortgage rates, and I think that'll be a period 0:13:28.760 --> 0:13:31.120 where we'll be able to see affordability come back a 0:13:31.160 --> 0:13:34.760 little bit. And it'll also take those people that are 0:13:34.760 --> 0:13:37.720 in that three percent golden handcuffs kind of mortgage and 0:13:37.840 --> 0:13:40.280 let them start thinking about Okay, maybe if rates are 0:13:40.679 --> 0:13:42.679 five and a quarter, five and a half, five point 0:13:42.760 --> 0:13:46.240 seventy five, I finally start making that move and they 0:13:46.240 --> 0:13:47.960 puts more houses into the market. 0:13:48.240 --> 0:13:50.240 So talk to us a little bit, Danielle about the 0:13:50.280 --> 0:13:53.160 relationship that you guys may have, you know, taking a 0:13:53.160 --> 0:13:55.920 company from you know, two hundred million dollars the two 0:13:55.920 --> 0:13:58.320 billion dollars, Like, what does that relationship look like? 0:13:58.360 --> 0:13:59.320 How do you support it? 0:13:59.400 --> 0:14:02.280 How do you have like the faith that it's gonna 0:14:02.320 --> 0:14:03.520 work in that relationship? 0:14:03.800 --> 0:14:06.560 Oh, I just appreciate that question so much. For first 0:14:06.559 --> 0:14:08.720 of all, working with Gil Homes and somebody like Marie, 0:14:08.720 --> 0:14:11.280 it's easy to have the faith because in addition to faith, 0:14:11.320 --> 0:14:14.920 you've seen the execution, You've seen the impact that they 0:14:14.920 --> 0:14:17.920 can have, and it's a fabulous business. I think also 0:14:17.920 --> 0:14:20.640 if we take a little step back, think about just 0:14:20.680 --> 0:14:23.160 what the role of women in business today, it is 0:14:23.280 --> 0:14:25.960 certainly grown, it continues to grow. 0:14:26.040 --> 0:14:27.200 It is our future. 0:14:27.320 --> 0:14:28.960 And I think some of what we look at is 0:14:29.240 --> 0:14:31.840 if you looked at between twenty nineteen and twenty twenty three, 0:14:32.400 --> 0:14:36.000 women own businesses, we're growing at more than double of 0:14:36.040 --> 0:14:39.920 other businesses that we're starting, and that number has just 0:14:40.280 --> 0:14:43.040 continued to grow and to expand. 0:14:42.600 --> 0:14:44.000 Over t Why is that what? Why do you think 0:14:44.000 --> 0:14:44.880 that happens? 0:14:44.960 --> 0:14:46.800 Well, I think the power of the purse is changing, 0:14:47.040 --> 0:14:48.560 and I think it's one of those things where we 0:14:48.600 --> 0:14:51.480 take a look at and say, these are amazing people 0:14:51.560 --> 0:14:54.600 who are now in the right spaces, in the right places, 0:14:54.640 --> 0:15:00.000 with the right support, right talent and prowess and engenuity. 0:15:00.200 --> 0:15:01.040 We're never lacking. 0:15:01.080 --> 0:15:04.360 It was opportunity, and so now that there is a 0:15:04.400 --> 0:15:07.840 focus on opportunity, there is a focus on how we 0:15:07.960 --> 0:15:11.080 as a firm and many financial firms can support these 0:15:11.120 --> 0:15:14.680 businesses and growth from the first inkling of an idea 0:15:14.880 --> 0:15:18.120 right in our small business space and our ingenuity and 0:15:18.120 --> 0:15:21.320 our accelerated programs all the way through how we work 0:15:21.360 --> 0:15:23.760 with them. In our commercial real estate. We are fortunate 0:15:23.840 --> 0:15:25.800 at Wells Fargo to be the number one platform in 0:15:25.800 --> 0:15:28.960 commercial real estate, and as such we have the ability 0:15:29.000 --> 0:15:30.760 to look in each and every one of our markets 0:15:31.040 --> 0:15:33.320 and say, where can we do more, where can we better, 0:15:33.360 --> 0:15:35.080 how can we push the system, and how can we 0:15:35.120 --> 0:15:39.320 be responsible around that. Maria and her company are just 0:15:39.360 --> 0:15:42.200 a gem of the companies that we work with. Looking 0:15:42.240 --> 0:15:46.880 at being value. Add having the right people seeing trends 0:15:47.160 --> 0:15:49.200 just I think it's constant communication with. 0:15:49.320 --> 0:15:51.440 Right I think what's one of the things that Wells 0:15:51.440 --> 0:15:54.720 Fargo's done really well is we are a family owned business, 0:15:54.920 --> 0:15:57.800 so they know not only the finance team, but the ownership. 0:15:58.160 --> 0:16:00.320 They know our CEO, who's a woman, and they know 0:16:00.360 --> 0:16:02.560 our chief marketing officers and women. They make it a 0:16:02.640 --> 0:16:05.360 point to go out to our communities and meet the 0:16:05.360 --> 0:16:11.800 people that are actually excavating lakes and doing the construction 0:16:12.040 --> 0:16:15.360 and viewing the product and viewing our clubhouses. So it's 0:16:15.440 --> 0:16:19.960 a it's a very collaborative kind of growth. So they've 0:16:20.000 --> 0:16:23.520 seen our growth and they have been really into our 0:16:23.600 --> 0:16:26.160 culture as well as our business model, which is very 0:16:26.160 --> 0:16:30.160 different from a large national homebuilder. So that kind of 0:16:30.240 --> 0:16:32.920 collaboration is what made it. It's great for two and 0:16:32.960 --> 0:16:34.200 a half decades. 0:16:33.880 --> 0:16:36.640 Two and a half decades interesting Daniel's and Dukeratz and 0:16:36.640 --> 0:16:39.320 that's one another reason. But that's it. I think for 0:16:39.360 --> 0:16:41.480 the rest of the day, they're Carolina people coming through. 0:16:41.560 --> 0:16:42.640 Oh, I'm so happy you said that. 0:16:43.360 --> 0:16:46.040 Carolina people will far I get the whole Carolina thing. 0:16:46.880 --> 0:16:49.240 It's tough stuff going the real estate business. Is tough 0:16:49.360 --> 0:16:53.080 enough Florida. I mean, every time I turn on the news, 0:16:53.160 --> 0:16:56.320 you guys are rebuilding in How do you deal with that. 0:16:56.360 --> 0:16:57.360 Risk day to day? 0:16:57.840 --> 0:17:00.880 Well, one of the things, I mean, Florida's hadmendous growth. 0:17:01.360 --> 0:17:03.920 You know, during the pandemic, We've had so many people 0:17:03.960 --> 0:17:07.880 come into Florida. But the fact is new communities aren't 0:17:08.200 --> 0:17:11.359 really like our communities that are single family home communities 0:17:11.359 --> 0:17:14.600 a couple hundred acres. They are not built on the coast, 0:17:15.119 --> 0:17:18.320 so you're ten to fifteen miles inland. Some storm surge, 0:17:18.320 --> 0:17:20.919 it's in an issue. On top of that, you know, 0:17:21.000 --> 0:17:24.680 finished floors are eight to twelve feet in Tampa, they're 0:17:24.880 --> 0:17:28.640 sixty feet above sea level, so flooding is not an issue. 0:17:28.720 --> 0:17:32.400 Then you've got concrete block construction, the latest Florida kind 0:17:32.400 --> 0:17:37.879 of building code. It's impact glass and tremendous amount of 0:17:37.920 --> 0:17:41.560 focus around water intrusion. So my heart goes out to 0:17:41.640 --> 0:17:46.080 everybody impacted by Helene and by Milton, and you know, 0:17:46.119 --> 0:17:51.320 the devastation, it's super scary and the preparations are important. 0:17:51.720 --> 0:17:54.960 But what you see in the news of the coast 0:17:55.080 --> 0:17:59.040 and older construction, it really shows that where you live 0:17:59.720 --> 0:18:02.760 and how the home build is different, and I think 0:18:02.800 --> 0:18:04.879 what we'll see in home building is people moving to 0:18:05.119 --> 0:18:05.919 new construction. 0:18:06.680 --> 0:18:09.000 Because of that, Danielle, I wanted to talk to you 0:18:09.040 --> 0:18:13.160 more about how the relationship that you may have with 0:18:13.320 --> 0:18:16.679 women business owners changes as the business grows. Right, So 0:18:17.240 --> 0:18:19.040 Maria was talking about how they went from a couple 0:18:19.160 --> 0:18:21.600 hundred million dollar business to a two billion dollar business. 0:18:21.840 --> 0:18:23.240 What does that mean that they ask of you? 0:18:23.320 --> 0:18:23.840 That's different? 0:18:24.359 --> 0:18:27.080 So you know, we're really fortunate as a company to 0:18:27.160 --> 0:18:30.520 have such talented people who work with all types of companies, 0:18:30.520 --> 0:18:34.040 different shape, sizes and industries. And so we have actually 0:18:34.080 --> 0:18:36.040 a platform where we have a head of diverse segments 0:18:36.080 --> 0:18:38.560 both for our consumer and small business banking, for our 0:18:38.560 --> 0:18:41.560 commercial business banking, for home lending businesses. So think of 0:18:41.600 --> 0:18:44.360 the mortgages that we do for a wealth and investment 0:18:44.400 --> 0:18:46.919 management platform as well as corporate and investment banking. 0:18:46.960 --> 0:18:49.240 And really what we want to see folks is. 0:18:49.200 --> 0:18:52.360 Sort of their ability to travel and swim throughout all 0:18:52.400 --> 0:18:55.320 of the offerings that we have at Wells Fargo and 0:18:55.680 --> 0:18:57.760 wherever their need is, we can meet them. So if 0:18:57.760 --> 0:19:00.320 we have a client who's looking for their first credit 0:19:00.320 --> 0:19:03.920 line ever, right, we can work with the small business administration. Well, 0:19:03.960 --> 0:19:07.240 I love to say that small businesses become big, great businesses, 0:19:07.280 --> 0:19:09.959 and so the needs are different at that point in time, Right, 0:19:10.000 --> 0:19:12.560 the facility sizes get larger, the way in which they 0:19:12.640 --> 0:19:15.159 issued at might get larger. And then imagine the founder 0:19:15.200 --> 0:19:18.600 of a company after six, seven, ten years has. 0:19:18.440 --> 0:19:19.560 The ability to IPO. 0:19:19.800 --> 0:19:22.680 What I really love is that one we can meet 0:19:22.720 --> 0:19:24.960 all those needs too, we can advise along the way. 0:19:25.680 --> 0:19:29.320 And three to watch generational wealth grow. That has to 0:19:29.359 --> 0:19:33.680 be one of the most rewarding things to see, especially 0:19:33.720 --> 0:19:37.520 women in business, as they learn, as they grow, as 0:19:37.520 --> 0:19:40.439 they execute and achieve. It's actually an honor to be 0:19:40.480 --> 0:19:43.160 part of that. And I think we can along the way. Yeah, 0:19:43.200 --> 0:19:44.800 that's nae Eryria at. 0:19:44.640 --> 0:19:47.639 Your company gl homes here he talks about it. I 0:19:47.640 --> 0:19:49.240 mean the growth you guys must be dealing with it. 0:19:49.400 --> 0:19:53.040 We think about South Carolina, Georgia, Florida, Texas being these 0:19:53.040 --> 0:19:55.919 great growth markets, which they've always been quite frankly for 0:19:55.960 --> 0:19:58.480 the forty years I've been in investment bank business. That's 0:19:58.480 --> 0:20:00.840 where the growth has been. Then comes pandemic and then 0:20:00.880 --> 0:20:02.200 it takes to another level. 0:20:02.280 --> 0:20:03.119 Yeah, it explodes. 0:20:03.240 --> 0:20:04.880 Talk to us about the last four to five years 0:20:05.000 --> 0:20:07.119 for you guys, How is your business change, How is 0:20:07.119 --> 0:20:09.520 your planning change? How is maybe your banking needs changed? 0:20:10.440 --> 0:20:14.480 Our business has changed dramatically. We went through some really 0:20:14.480 --> 0:20:17.520 difficult times. Getting a house built during the pandemic used 0:20:17.560 --> 0:20:20.880 to took six to twelve months before and it could 0:20:20.920 --> 0:20:23.520