Wells Fargo History

Topics: Subprime mortgage crisis, Subprime lending, Wells Fargo Pages: 2 (878 words) Published: May 17, 2013
A. Significant event from 1980-Financial crisis (acquisitions/mergers) Added services. Wells Fargo has grown mainly through its mergers and acquisitions with small banks and companies. In the late 20th century Wells Fargo acquired Crocker National, Barclay’s Bank and First Interstate Bank. These acquisitions occurred between 1986 and 1996. The acquisitions were recorded the largest buyouts to date. The process is as follows: 1. 1990-Norwest acquires First Interstate of Wisconsin

2. 1992-Norwest acquires First Minnesota Savings Bank and United Banks of Colorado 3. 1998- Norwest merges with Wells Fargo (keeps the Wells Fargo name) In the 21st century Wells Fargo took control of 10 bank holding and two mortgage companies. Wells Fargo has acquired around 119 companies in nine years by 2009.

Another significant event in Wells Fargo history is in 1981 a Wells Fargo employee, specifically a Wells Fargo Operating officer, embezzled $21.3 million, which was reported the largest embezzlement ever. The employees plead guilty to writing phony debit and credit receipts to his friend’s accounts, while receiving a $300,000 cut. B. What was their role as a bank in the years leading up to the financial crisis? 2000--In December of 2000, Wells Fargo invested $150,000 in a Seattle based housing provider, HomeSight. Wells Fargo hoped that this investment would increase affordable homeownership opportunities in Seattle. This investment helped low and moderate income, first time buyer purchase homes. According to a Wells Fargo news release, the investment helped HomeSight assist more than 60 first-time buyers purchase homes. In addition to this investment Wells Fargo provided $7 million in construction financing to a HomeSight development called Noji Gardens. This financing helped in constructing over 67 homes to again first time buyers. 2004—In 2004, Wells Fargo introduced a new innovative product that enabled homeowners to handle their home as an...
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