Wells Fargo and Wachovia merger
Wachovia and Wells Fargo faced many issues as though all banking institution when they merge. Wells Fargo’s home office of San Francisco, California $609 billion in Asset Corporation with more than 3000 branches in over 24 states (Casale, 2008). In Charlotte, NC, “the banking capital of the world” is the home office of Wachovia which, has 812 billion in assets, more than 3000 branches in over 21 states. In my research I discovered that Citigroup Inc; initially had agreed to purchase Wachovia prior to Wells Fargo making an offer. because of major differences the two companies’ could not come to an agreement. Wachovia and Wells Fargo was guilty of breach of contract.Citigroup did not prevent the merger but instead file a law suit in with the supreme court in the United States District seeking over$60billion in compensation (Casale, 2008).
Respond to issue
Wachovia president and Chief Executive Officer Robert K. Steel said “that the merger would allow Wachovia to keep the value of an integrated company without the assistance of the government. He also saw great potential for sustained stability and growth.” (Casale, 2008). Some of the officials of Wells Fargo noted that the merger would present other opportunities to grow in the community and wholesale banking, this type of banking provides services to other banks or large corporations. The overall responds to the merger was a positive.
The Wells Fargo and company merger with Wachovia deal will combine many of the company’s operations, including their insurance brokerage units making them the largest in the world (Casale, 2008) though many were skeptical about the merger, as a consumer. I have not seen or experience any major changes in my personal banking as a result of the merger. I like the idea of more branches available and ATM s. The online services are always available...
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