Wells Fargo & Co.
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| Wells Fargo & Co. | |
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| Founded | 1852 |
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| Headquarters | San Francisco |
| Key People | C. Allen Parker, Interim CEO. |
| Employees | 160,900 |
| Products | Diversified financial services |
| Website | https://www.wellsfargo.com |
Wells Fargo has historically been one of America's top-rated banks by both investment and employment analysts. It was one of the few U.S. financial institutions to outperform expectations following the 2007 credit crunch. The bank had about $1.9 trillion in assets as of December 31, 2018.
However, Wells Fargo was enveloped in a scandal in September of 2016 when it was uncovered that some Wells Fargo bankers had opened secret, unauthorized credit card and deposit accounts for customers for at least five years beginning in 2011, in an attempt to meet their sales goals.[1] The company received subpoenas from three different U.S. attorneys' offices in mid-September, and an investigation resulted in billions of dollars in fines and settlements.[2] [3]
Since the scandal, Wells Fargo & Co.'s reputation has suffered. The regulatory problems that developed claimed the jobs of two CEOs. The banks business lines have struggled as well amid declining revenues. Revenue fell in each of the bank's three business lines -- consumer banking, wholesale banking and wealth management -- in 2018. The bank's chief executive, Timothy J. Sloan, stepped down in March of 2018 and the bank appointed C. Allen Parker, the former general counsel, as interim CEO. Wells Fargo hired Charles Scharf as CEO, starting in October 2019.[4][5] [6]
Wells Fargo Securities, LLC is the name for the investment banking and capital markets division of Wells Fargo & Co.
History[edit]
Wells Fargo was formed in New York City in 1852 to operate banking and express delivery services in gold-rush California. By 1888, it was offering its famed 'ocean-to-ocean' service delivering valuable commodities across the continent via its iconic stagecoaches and pony express.[7] Today Wells Fargo operates around 3,300 bank branches and about 3,400 consumer-finance outlets in the West and Midwest of the United States and is also an industry leader in insurance brokerage, mutual funds and online services.[8]
In 1905 Wells Fargo & Co’s Bank, San Francisco (as it was called since 1852), formally separated from Wells Fargo & Co Express. After surviving the 1906 San Francisco earthquake and fire, which devastated the city, Wells Fargo operated as a local commercial bank. In the 1960s it became a regional bank, and in the 1980s went state-wide in California.
In the 1990s and 2000s, the bank joined the merger craze, acquiring First Interstate Bancorp in 1995, Norwest in 1998, and a number of smaller, regional institutions. During the Credit Crisis of 2008, Wells Fargo took over the troubled Wachovia Corporation. As of 2015, Wells Fargo is the 4th largest bank in the U.S., with $1.8 trillion in assets. The bank has approximately 265,000 employees, at 8700 locations in 36 countries, across our more than 90 businesses.[9]
Products and Services[edit]
Wells Fargo is a diversified financial-services group best known for the following:
- Retail and business banking
- Mortgage lending and servicing
- Insurance brokerage
- Mutual funds and asset management
- Online banking and brokerage
Key People[edit]
- Charles Scharf, CEO
- John R. Shrewsberry, Senior Executive Vice President, Chief Financial Officer
- Patricia R. Callahan, Executive Vice President, Office of Transition
- David M. Carroll, Senior Executive Vice President, Wealth, Brokerage & Retirement Services
- David A. Hoyt, Senior Executive Vice President, Wholesale Banking
- Richard D. Levy, Executive Vice President, Controller
- Michael J. Loughlin, Executive Vice President and Chief Risk Officer
- Avid Modjtabai, Executive Vice President, Technology & Operations
- Mark C. Oman, Senior Executive Vice President, Home and Consumer Finance
- Kevin A. Rhein, Executive Vice President, Card Services and Consumer Lending
- James M. Strother, Executive Vice President, General Counsel
- Carrie L. Tolstedt, Senior Executive Vice President, Community Banking
References[edit]
- ↑ Citing 'gutless Leadaership,' Senators Denounce Wells Fargo's John Stumpf. New York Times Dealbook.
- ↑ Wells Fargo Subpoenaed in Sham Account Case. The New York Times.
- ↑ Outsider CEO won't be an instant fix for Wells Fargo: analysts. Reuters.
- ↑ BNY Mellon boss Charles Scharf departs, named CEO of Wells Fargo. The Trade.
- ↑ Wells Fargo Struggles to Regain Footing. Wall Street Journal via Morningstar.
- ↑ Wells Fargo CEO Tim Sloan Steps Down. The Wall Street Journal.
- ↑ Since 1852. Wells Fargo.
- ↑ Wells Fargo & Company. Hoovers.com.
- ↑ Quarterly Fact Sheet. Wells Fargo.