Wells Fargo Case Analysis

4072 Words17 Pages
By:
Annette Garcia
Mikey Tran
Thy Nguyen
Omar Ennabe

April 24, 2007

Wells Fargo & Co. is a diversified financial services company in the United States with consumer finance subsidiaries doing business in Canada and Puerto Rico.

Headquartered in San Francisco, California, Wells Fargo is a result of a merger between California-based Wells Fargo & Co. and Minneapolis-based Norwest Corporation in 1998. The new company chose to keep the name Wells Fargo, to capitalize on the 150 year history of the nationally recognized Wells Fargo name and its trademark stagecoach.

Wells Fargo & Co. is one of the United States top-40 largest private employers. They ranked fifth in assets and fourth in market value of their stock among their peers.

As of
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By the end of the 1970's their growth slowed somewhat. In 1980 the new chairman said "It's time to slow down. The last five years have created too great a strain on our capital, liquidity, and people."

1980-1990 In 1981 the banking industry was shocked by the news of a $21.3 million embezzlement scheme by a Wells Fargo employee. It was one the largest embezzlements ever. In the early 1980s there was a sharp decline in Wells Fargo's performance. They had to recover from there loss and had to eliminated branches and cut 3,000 jobs. In 1986 Wells Fargo purchased rival Crocker National Corporation. This acquisition was a great move for Wells Fargo. Crocker doubled the strength of Wells Fargo making it the tenth largest bank in the United States. Concentrating on California as their target market Wells Fargo was a successful strategy.

1990-1995

During this time Wells Fargo was loaded with a lot of debt stemming from the risky real estate loans from the 1980s. However the bank had improved their loan-loss ratio. Despite the poor economy in the early 1990s, Wells Fargo had healthy gains.

1995-Present

In late 1995, Wells Fargo began a pursuing a hostile takeover of First Interstate Bancorp. Wells Fargo but a bid in for $10.8 billion but then other banks came and tried to bid as well. First Interstate Bancorp ran into regulatory difficulties with the way it had structured its offer. There were then talks between Wells Fargo and First Interstate which led to a

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