Who Owns Wells Fargo Bank?
The financial company Wells Fargo has a very rich, long history and the ownership has changed over the more than 100 years that this company has been in operation. As with many financial institutions, changes are always occurring. In these many years this company has established itself as one of the premier financial institutions in the Untied States. It is considered to be one of The Big Four Banks in the United States along with Bank of America, Citigroup and JP Morgan Chase. The evolution of Wells Fargo as bank has included changes in the ownership over the course of the years that have directly impacted its functioning and reputation.
As of 2010, Wells Fargo Bank is owned by Norwest Corporation. In 1998, the already established Wells Fargo Bank agreed to merge into Norwest Corporation. Norwest decided to change its name to Wells Fargo and Company because of the popularity and esteem of the name. This merger occurred because Wells Fargo completed a merger with First Interstate Bancorp that went south as a result of consolidation issues which included computer errors, customer frustrations over lost deposits and bounced checks.
These problems resulted in many customers taking their business elsewhere, thus severely jeopardizing Wells Fargo and Company’s financial status and reputation. To avoid being taken over by another financial institution, Wells Fargo and company agreed to merge into Norwest Corporation.
Norwest and Wells Fargo Merger
The merger between Norwest Corporation and Wells Fargo Company proved to be very beneficial for both parties. Although the name of the financial company is Wells Fargo and Company, it is important to note that Norwest Corporation is the company who owns Wells Fargo Bank.
When Wells Fargo merged into Norwest, Norwest chose to adopt the Wells Fargo name because of its status and recognition. Eventually, Norwest would move their headquarters from Minnesota to San Francisco because the large amount of deposits that were in San Francisco as a result of the Wells Fargo merger.
The merger went relatively smooth unlike Wells Fargo and Company’s merger with First Interstate Bancorp. This is mainly because the merger was completed over a longer period of time of about two or three years.
Norwest, as Wells Fargo and Company, would continue its practice of acquiring small banks each year and cross selling its products to increase its property. By utilizing these practices, Wells Fargo and Company would continue to gain significant profits, and is considered to be one of the most financially sound banks in the United States today.
Growth of Wells Fargo and Company
Wells Fargo and Company became one of the biggest banks in the United States with its acquisition of Wachovia Bank in 2009. Wachovia Bank was deeply affected by the financial downturn which occurred in 2008. Wachovia Bank had participated in offering risky loans to homeowners which went sour when people begin to default on their mortgages.
With the failure of other major banks and a silent run on Wachovia Bank, the financial climate was very precarious. Both Citigroup and Wells Fargo were in talks with the FDIC in order to purchase Wachovia to prevent another huge bank failure. Although Citigroup was seen as the primary potential buyer, ultimately Wells Fargo would purchase Wachovia for $15.1 billion.
The acquisition of Wachovia would increase Wells Fargo’s presence throughout the United States substantially, particularly throughout the East and the South. With this merger Wells Fargo would be worth more than $1.4 trillion and would service over 48 million customers.
When considering who owns Wells Fargo Bank it is important to consider that many financial institutions are constantly undergoing change with the popularity of mergers and other forms of acquisitions. Thus, the owners today may not necessarily be the owners tomorrow.