watch the thematic videoRacist Bank of America manager had man arrested for asking to close account. Part 3. 8/22/18
SARASOTA, Fla. (WWSB) - Several Bank of America branches in Florida will temporarily close due to the spike in coronavirus cases. The decision was made to protect the health and safety of the bank staff.
Bank of America’s ATM locations and mobile banking site will remain functional. Some locations will continue to operate drive-through banking. There is no estimated duration of closure.
To make an appointment to access your safe deposit box during regular business hours, you can email the bank at [email protected] and include your full name, address and phone number in the email.
You can check in on the status of a location by clicking here or view the list below.
Suncoast Branches affected include:
Braden Plaza, 4302 State Road 64 E, Bradenton, FL 34208
College Plaza, 3401 Cortez Rd W, Bradenton, FL 34210
Peridia, 5315 39th St E, Bradenton, FL 34203
Bayshore, 6160 14th St W, Bradenton, FL 34207
Tara, 7223 55th Ave E, Bradenton, FL 34203
Westside, 4311 Manatee Ave W, Bradenton, FL 34209
Gateway North, 11200 State Road 64 E, Bradenton, FL 34212
North Port, 14299 Tamiami Trl, North Port, FL 34287
Fruitville Road, 3175 Fruitville Rd, Sarasota, FL 34237
Sarasota Main, 1990 Fruitville Rd, Sarasota, FL 34236
Sarasota Square, 8111 S Beneva Rd, Sarasota, FL 34238
Sarasota Crossings, 5457 Fruitville Rd, Sarasota, FL 34232
Village Plaza, 3600 Bee Ridge Rd, Sarasota, FL 34233
University Parkway, 8498 Lockwood Ridge Rd, Sarasota, FL 34243
Palmer Crossing, 5470 Clark Rd, Sarasota, FL 34233
South Venice, 2180 S Tamiami Trl, Venice, FL 34293
Venice, 304 W Venice Ave, Venice, FL 34285
Copyright 2020 WWSB. All rights reserved.
A dedicated advisor can help you craft a unique financial strategy and provide advice and guidance to keep you on track
Work with an advisor to help you take care of your full financial life, from big questions to the bigger picture.
Latest insights on tax proposals and other policy changes that could affect your financial life.
Barron’s Top 1,200 Financial Advisors
Merrill has the most advisors on the 2021 list.
New to Merrill?
Have an advisor call you to discuss your goals. Just answer a few short questions to get started.
American multinational banking and financial services company
For other uses, see Wells Fargo (disambiguation).
Company logo since 2019
Wells Fargo's corporate headquarters complex in San Francisco, California
|Founded||1929 (92 years ago) (1929) in Minneapolis, U.S. (as Northwest Bancorporation)|
1983 (as Norwest Corporation)
1998 (as Wells Fargo & Company)
|Founders||(Wells Fargo Bank)|
|Headquarters||San Francisco, California, U.S. (corporate);|
New York, NY (operational)
Number of locations
|Products||Asset management, banking, commodities, credit cards, equities trading, insurance, investment management, mortgage loans, mutual funds, private equity, risk management, wealth management|
|Revenue||US$72.34 billion (2020)|
|US$581 million (2020)|
|US$3.30 billion (2020)|
|Total assets||US$1.955 trillion (2020)|
|Total equity||US$185.9 billion (2020)|
Number of employees
|Footnotes / references|
Wells Fargo & Company is an American multinational financial services company with corporate headquarters in San Francisco, California, operational headquarters in Manhattan, and managerial offices throughout the United States and internationally. The company has operations in 35 countries closest bank of america branch over 70 million customers globally. It is considered a systemically important financial institution by the Financial Stability Board.
The firm's primary subsidiary is Wells Fargo Bank, N.A., a national bank chartered in Wilmington, Delaware which designates its main office in Sioux Falls, South Dakota. It is the fourth largest bank in the United States by total assets and is one of the largest as ranked by bank deposits and market capitalization. Along with JPMorgan Chase, Bank of America, and Citigroup, Wells Fargo is one of the "Big Four Banks" of the United States. It has 8,050 branches and 13,000 ATMs. It is one of the most valuable bank brands.
Wells Fargo in its present form is a result of a merger between the original Wells Fargo & Company and Minneapolis-based Norwest Corporation in 1998. While Norwest was the nominal survivor, the merged company took the better-known Wells Fargo name and moved to Wells Fargo's hub in San Francisco, while its banking subsidiary merged with Wells Fargo's Sioux Falls-based banking subsidiary. With the 2008 acquisition of Closest bank of america branch Wachovia, Wells Fargo became a coast-to-coast bank. Wells Fargo is ranked 7th on the Forbes Global 2000 list of largest public companies in the world and ranked 37th on the Fortune 500 list of the largest companies in the US. The company has been the subject of several investigations by regulators. On February 2, 2018, due to the Wells Fargo account fraud scandal, the Federal Reserve barred Wells Fargo from growing its nearly $2 trillion-asset base any further until the company fixes its internal problems to the satisfaction of the Federal Reserve. In September 2021, Wells Fargo incurred further fines from the United States Justice Department charging fraudulent behavior by the bank against foreign-exchange currency trading customers.
For history before 1998, see Wells Fargo (1852–1998). For history after 1998, see History of Wells Fargo.
In 1852, Henry Wells and William G. Fargo, the two founders of American Express, formed Wells Fargo & Company to provide express and banking services to California, which was growing rapidly due to the California Gold Rush.
In March 1860, Wells Fargo gained control Butterfield Overland Mail Company, after Congress failed to pass the annual post office appropriation bill, thereby leaving the post office with no way to pay for the Overland Mail Company's services, and leaving Overland no way to pay Wells Fargo. Wells Fargo then operated the western portion of the Pony Express.
In 1866, the "Grand consolidation" united Wells Fargo, Holladay, and Overland Mail stage lines under the Wells Fargo name.
In 1872, Lloyd Tevis, a friend of the Central Pacific "Big Four" and holder of rights to operate an express service over the Transcontinental Railroad, became president of the company after acquiring a large stake, a position he held until 1892.
In 1892, John J. Valentine, Sr., a long time Wells Fargo employee, was made president of the company. Valentine died in late December 1901 and was succeeded as president by Dudley Evans on January 2, 1902.
In 1905, Wells Fargo separated its banking and express operations; Wells Fargo's bank merged with the Nevada National Bank to form the Wells Fargo Nevada National Bank.
In 1918, as a wartime measure, the United States government nationalized Wells Fargo's express franchise into a federal agency known as the US Railway Express Agency (REA). The federal government took control of the express company. The bank began rebuilding but with a focus on commercial markets. After the war, the REA was privatized and continued service until 1975.
In 1923, Wells Fargo Nevada merged with the Union Trust Company to form the Wells Fargo Bank & Union Trust Company.
In 1929, Northwest Bancorporation was formed as a banking association.
The company did well during the Great Depression; during a Bank Holiday in March 1933, the company actually gained $2 million of deposits.
In 1954, Wells Fargo & Union Trust shortened its name to Wells Fargo Bank.
In 1960, Wells Fargo merged with American Trust Company to form the Wells Fargo Bank American Trust Company.
In 1962, Wells Fargo American Trust shortened its name to Wells Fargo Bank.
In 1968, Wells Fargo was converted to a federal banking charter, becoming Wells Fargo Bank, N.A. Wells Fargo merges with Henry Trione's Sonoma Mortgage in a $10.8 million stock transfer, making Trione the largest shareholder in Wells Fargo until Warren Buffett and Walter Annenberg surpassed him.
In 1969, Wells Fargo & Company holding company was formed, with Wells Fargo Bank as its main subsidiary.
In 1982, Northwest Bancorporation acquired consumer finance firm Dial Finance, which was renamed Norwest Financial Service the following year.
In 1983, Northwest Bancorporation was renamed Norwest Corporation.
In September 1983, a Wells Fargo armored truck depot in West Hartford, Connecticut was the victim of the White Eagle robbery, involving an insider who worked as an armored truck guard, in the largest US bank theft to date, with $7.1 million stolen and two co-workers tied up. The robbery was carried out with the support of the government of Cuba and the cash was initially moved to Mexico City.
In 1986, Wells Fargo acquired Crocker National Bank from Midland Bank.
In 1987, Wells Fargo acquired the personal trust business of Bank of America.
In 1988, Wells Fargo acquired Barclays Bank of California from Barclays plc.
In 1991, Wells Fargo acquired 130 branches in California from Great American Bank for $491 million.
In May 1995, Wells Fargo became the first major US financial services firm to offer internet banking.
In 1996, Wells Fargo acquired First Interstate Bancorp for $11.6 billion. Integration went poorly as many executives left.
In 1998, Wells Fargo Bank was acquired by Norwest Corporation of Minneapolis, with the combined company assuming the Wells Fargo name.
In 2000, Wells Fargo Bank acquired National Bank of Alaska. It also acquired First Security Corporation.
In 2001, Wells Fargo acquired H.D. Vest Financial Services for $128 million, but sold it in 2015 for $580 million.
In June 2007, John Stumpf was named chief executive officer of the company and Richard Kovacevich remained as chairman.
In 2007, Wells Fargo acquired Greater Bay Bancorp, which had $7.4 billion in assets, in a $1.5 billion transaction. It also acquired Placer Sierra Bank. It also acquired CIT Group's construction unit.
In 2008, Wells Fargo acquired United Bancorporation of Wyoming.
In 2008, Wells Fargo acquired Century Bancshares of Texas.
On October 3, 2008, after Wachovia turned down an inferior offer from Citigroup, Wachovia agreed to be bought by Wells Fargo for about $14.8 billion in stock. On October 4, 2008, a New York state judge issued a temporary injunction blocking the transaction from going forward while the competing offer from Citigroup was sorted out. Citigroup alleged that it had an exclusivity agreement with Wachovia that barred Wachovia from negotiating with other potential buyers. The injunction was overturned late in the evening on October 5, 2008, by New York state appeals court. Citigroup and Wells Fargo then entered into negotiations brokered by the FDIC to reach an amicable solution to the impasse. Those negotiations failed. Citigroup was unwilling to take on more risk than the $42 billion that would have been the cap under the previous FDIC-backed deal (with the FDIC incurring all losses over $42 billion). Citigroup did not block the merger, but sought damages of $60 billion for breach of an alleged exclusivity agreement with Wachovia.
On October 28, 2008, Wells Fargo received $25 billion of funds via the Emergency Economic Stabilization Act in the form of a preferred stock purchase by the United States Department of the Treasury. As a result of requirements of the government stress tests, the company raised $8.6 billion in capital in May 2009. On December 23, 2009, Wells Fargo redeemed $25 billion of preferred stock issued to the United States Department of the Treasury. As part of the redemption of the preferred stock, Wells Fargo also paid accrued dividends of $131.9 million, bringing the total dividends paid to $1.441 billion since the preferred stock was issued in October 2008.
In April 2009, Wells Fargo acquired North Coast Surety Insurance Services.
In 2011, the company hired 25 investment bankers from Citadel LLC.
In April 2012, Wells Fargo acquired Merlin Securities. In December 2012, it was rebranded as Wells Fargo Prime Services.
In December 2012, Wells Fargo acquired a 35% stake in The Rock Creek Group LP. The stake was increased to 65% in 2014 but sold back to management in July 2018.
In 2015, Wells Fargo Rail acquired GE Capital Rail Services and merged in with First Union Rail. In late 2015, Wells Fargo acquired three GE units focused on business loans equipment financing.
In March 2017, Wells Fargo announced a plan to offer smartphone-based transactions with mobile wallets including Wells Fargo Wallet, Android Pay and Samsung Pay.
In June 2018, Wells Fargo sold all 52 of its physical bank branch locations in Indiana, Michigan, and Ohio to Flagstar Bank.
In September 2018, Wells Fargo announced it would cut 26,450 jobs by 2020 to reduce costs by $4 billion.
In March 2019, CEO Tim Sloan resigned amidst the Wells Fargo account fraud scandal and former general counsel C. Allen Parker became interim CEO.
In July 2019, Principal Financial Group acquired the company's Institutional Retirement & Trust business.
On September 27, 2019, Charles Scharf was announced as the firm's new CEO.
In 2020, the company sold its student loan portfolio.
In May 2021, the company sold its Canadian Direct Equipment Finance business to Toronto-Dominion Bank.
In 2021, the company sold its asset management division, Wells Fargo Asset Management (WFAM) to private equity firms GTCR and Reverence Capital Partners for $2.1 billion. WFAM had $603 billion in assets under management as of December 31, 2020, of which 33% was invested in money market funds. WFAM was rebranded as Allspring Global Investments.
In 2009, Wells Fargo ranked 1st among banks and insurance companies, and 13th overall, in Newsweek Magazine's inaugural "Green Rankings" of the country's 500 largest companies.
In 2013, the company was recognized by the EPA Center for Corporate Climate Leadership as a Climate Leadership Award winner, in the category "Excellence in Greenhouse Gas Management (Goal Setting Certificate)"; this recognition was for the company's aim to reduce its absolute greenhouse gas emissions from its US operations by 35% by 2020 versus 2008 levels.
In 2017, Wells Fargo ranked 182nd out of 500 in Newsweek Magazine's "Green Rankings" of the largest US companies;
Newsweek's 2020 listing of "America's Most Responsible Companies" did not include Wells Fargo.
Wells Fargo has provided more than $10 billion in financing for environmentally beneficial business opportunities, including supporting commercial-scale solar photovoltaic projects and utility-scale wind projects nationwide.
In 2010, Wells Fargo launched what it believes to be the first blog among its industry peers to report on its environmental stewardship and to solicit feedback and ideas from its stakeholders.
Wells Fargo History Museum
The company operates the Wells Fargo History Museum at 420 Montgomery Street, San Francisco. Displays include original stagecoaches, photographs, gold nuggets and mining artifacts, the Pony Express, telegraph equipment, and historic bank artifacts. The museum also has a gift shop. In January 2015, armed robbers in an SUV smashed through the museum's glass doors and stole gold nuggets. The company previously operated other museums but those have since closed.
Operations and services
Consumer Banking and Lending
The Consumer Banking and Lending segment includes Regional Banking, Diversified Products, and Consumer Deposits groups, as well as Wells Fargo Customer Connection (formerly Wells Fargo Phone Bank, Wachovia Direct Access, the National Business Banking Center, and Credit Card Customer Service). Wells Fargo also has around 2,000 stand-alone mortgage baby 1st birthday party ideas throughout the country. There are also mini-branches located inside of other buildings, which are almost exclusively grocery stores, that usually contain ATMs, basic bank teller services, and an office for private meetings with customers.
Wells Fargo Home Mortgage is the second largest retail mortgage originator in the United States, originating one out of every four home loans. Wells Fargo services $1.8 trillion in home mortgages, the one of the largest servicing portfolios in the US.
Wells Fargo has various divisions, including Wells Fargo Rail, that finance and lease equipment to different types of companies.
Wealth and Investment Management
Wells Fargo offers investment products through its subsidiaries, Wells Fargo Investments, LLC, and Wells Fargo Advisors, LLC, as well as through national broker/dealer firms. The company also serves high-net-worth individuals through its private bank and family wealth group.
Wells Fargo Advisors is the brokerage subsidiary of Wells Fargo, located in St. Louis, Missouri. It is the third-largest brokerage firm american heritage credit union customer service number the United States as of the third quarter of 2010 with $1.1 trillion retail client assets under management.
Wells Fargo Advisors was known as Wachovia Securities until May 1, 2009, when it was renamed following Wells Fargo's acquisition of Wachovia Corporation.
Wells Fargo Securities (WFS) is the investment banking division of Wells Fargo & Co. headquartered in Charlotte, with other U.S. offices in New York, Minneapolis, Boston, Houston, San Francisco, and Los Angeles and with international offices in London, Hong Kong, Singapore, and Tokyo.
Wells Fargo Securities was established in 2009 after the acquisition of Wachovia Securities. It provides merger and acquisition, high yield, leveraged finance, equity underwriting, private placement, loan syndication, risk management, and public finance services
A key part of Wells Fargo's business strategy is cross-selling, the practice of encouraging existing customers to buy additional banking services. Customers inquiring about their checking account balance may be pitched mortgage deals and mortgage holders may be pitched credit card offers in an attempt to increase the customer's profitability to the bank. Other banks have attempted to emulate Wells Fargo's cross-selling practices (described by The Wall Street Journal as a hard sell technique).
Wells Fargo has banking services throughout the world, with overseas offices in Hong Kong, London, Dubai, Bmo bank of montreal cornwall on, Tokyo, and Toronto. Back-offices are in India and the Philippines with more than 20,000 staff.
In 2010, hedge fund administrator Citco purchased the trust company operation of Wells Fargo in the Cayman Islands.
Wells Fargo operates under Charter #1, the first national bank charter issued in the United States. This charter was issued to First National Bank of Philadelphia on June 20, 1863, by the Office of the Comptroller of the Currency. Traditionally, acquiring banks assume the earliest issued charter number. Thus, the first charter passed from First National Bank of Philadelphia to Wells Fargo through its 2008 acquisition of Wachovia, which had inherited it through one of its many acquisitions.
Lawsuits, fines and controversies
1981 MAPS Wells Fargo embezzlement scandal
In 1981, it was discovered that a Wells Fargo assistant operations officer, Lloyd Benjamin "Ben" Lewis, had perpetrated one of the largest embezzlements in history, through its Beverly Drive branch. During 1978 - 1981, Lewis had successfully written phony debit and credit receipts to benefit boxing promoters Harold J. Smith (né Ross Eugene Fields) and Sam "Sammie" Marshall, chairman and president, respectively, of Muhammed Ali Professional Sports, Inc. (MAPS), of which Lewis was also listed as a director; Marshall, too, was a former employee of the same Wells Fargo branch as Lewis. In excess of $300,000 was paid to Lewis, who pled guilty to embezzlement and conspiracy charges in 1981, and testified against his co-conspirators for a reduced five-year sentence. (Boxer Muhammed Ali had received a fee for the use of his name, and had no other involvement with the organization.)
Higher costs charged to African-American and Hispanic borrowers
Illinois Attorney General Lisa Madigan filed suit against Wells Fargo on July 31, 2009, alleging that the bank steers African Americans and Hispanics into high-cost subprime loans. A Wells Fargo spokesman responded that "The policies, systems, and controls we have in place – including in Illinois – ensure race is not a factor." An affidavit filed in the case stated that loan officers had referred to black mortgage-seekers as "mud people," and the subprime loans as "ghetto loans." According to Beth Jacobson, a loan officer at Wells Fargo interviewed for a report in The New York Times, "We just went right after them. Wells Fargo mortgage had an emerging-markets unit that specifically targeted black churches because it figured church leaders had a lot of influence and could convince congregants to take out subprime loans." The report presented data from the city of Baltimore, where more than half the properties subject to foreclosure on a Wells Fargo loan from 2005 to 2008 now stand vacant. And 71 percent of those are in predominantly black neighborhoods. Wells Fargo agreed to pay $125 million to subprime borrowers and $50 million in direct down payment assistance in certain areas, for a total of $175 million.
Failure to monitor suspected money laundering
In a March 2010 agreement with US federal prosecutors, Wells Fargo acknowledged that between 2004 and 2007 Wachovia had failed to monitor and report suspected money laundering by narcotics traffickers, including the cash used to buy four planes that shipped a total of 22 tons of cocaine into Mexico.
In August 2010, Wells Fargo was fined by United States district court judge William Alsup for overdraft practices designed to "gouge" consumers and "profiteer" at their expense, and for misleading consumers about closest bank of america branch the bank processed transactions and assessed overdraft fees.
Settlement and fines regarding mortgage servicing practices
On February 9, 2012, it was announced that the five largest mortgage servicers (Ally Financial, Bank of America, Citigroup, JPMorgan Chase, and Wells Fargo) agreed to a settlement with the US Federal Government and 49 states. The settlement, known as the National Mortgage Settlement (NMS), required the servicers to provide about $26 billion in relief to distressed homeowners and in direct payments to the federal and state governments. This settlement amount makes the NMS the second largest civil settlement in U.S. history, only trailing the Tobacco Master Settlement Agreement. The five banks were also required to comply with 305 new mortgage servicing standards. Oklahoma held out and agreed to settle with the banks separately.
On April 5, 2012, a federal judge ordered Wells Fargo to pay $3.1 million in punitive damages over a single loan, one of the largest fines for a bank ever for mortgaging service misconduct, after the bank improperly charged Michael Jones, a New Orleans homeowner, with $24,000 in mortgage fees, after the bank misallocated payments to interest instead of principal. Elizabeth Magner, a federal bankruptcy judge in the Eastern District of Louisiana, cited the bank's behavior as "highly reprehensible", stating that Wells Fargo has taken advantage of borrowers who rely on the bank's accurate calculations. The award was affirmed on appeal in 2013.
In May 2013, New York attorney-general Eric Schneiderman announced a lawsuit against Wells Fargo over alleged violations of the national mortgage settlement. Schneidermann claimed Wells Fargo had violated rules over giving fair and timely serving. In 2015, a judge sided with Wells Fargo.
SEC fine due to inadequate risk disclosures
On August 14, 2012, Wells Fargo agreed to pay around $6.5 million to settle U.S. Securities and Exchange Commission (SEC) charges that in 2007 it sold risky mortgage-backed securities without fully realizing their dangers.
Lawsuit by FHA over loan underwriting
In 2016, Wells Fargo agreed to pay $1.2 billion to settle allegations that the company violated the False Claims Act by underwriting over 100,000 Federal Housing Administration (FHA) backed loans when over half of the applicants did not qualify for the program.
In October 2012, Wells Fargo was sued by United States AttorneyPreet Bharara over questionable mortgage deals.
Lawsuit due to premium inflation on forced place insurance
In April 2013, Wells Fargo settled a suit with 24,000 Florida homeowners alongside insurer QBE Insurance, in which Wells Fargo was accused of inflating premiums on forced-place insurance.
Lawsuit regarding excessive overdraft fees
In May 2013, Wells Fargo paid $203 million to settle class-action litigation accusing the bank of imposing excessive overdraft fees on checking-account customers.
Violation of New York credit card laws
In February 2015, Wells Fargo agreed to pay $4 million, including a $2 million penalty and $2 million in restitution for illegally taking an interest in the homes of borrowers in exchange for opening credit card accounts for the homeowners.
Tax liability and lobbying
In December 2011, Public Campaign criticized Wells Fargo for spending $11 million on lobbying during 2008–2010, while increasing executive pay and laying off workers, while having no federal tax liability due to losses from the Great Recession. However, in 2013, the company paid $9.1 billion in income taxes.
Prison industry investment
Main article: Prison–industrial complex
The company has invested its clients' funds in GEO Group, a multi-national provider of for-profit private prisons. By March 2012, its stake had grown to more than 4.4 million shares worth $86.7 million. As of November 2012, Wells Fargo divested 33% of its holdings of GEO's stock, reducing its stake to 4.98% of Geo Group's common stock, below the threshold of which it must disclose further transactions.
Discrimination against African Americans in hiring
In August 2020, the company agreed to pay $7.8 million in back wages for allegedly discriminating against 34,193 African Americans in hiring for tellers, personal bankers, customer sales and service representatives, and administrative support positions. The company agreed to provide jobs to 580 of the affected applicants.
In May 2015, Gregory T. Bolan Jr., a stock analyst at Wells Fargo agreed to pay $75,000 to the U.S. Securities and Exchange Commission to settle allegations that he gave Joseph C. Ruggieri, a stock trader, insider information on probable ratings charges. Ruggieri was not convicted of any crime.
Wells Fargo fake accounts scandal
Main article: Wells Fargo account fraud scandal
In September 2016, Wells Fargo was issued a combined total of $185 million in fines for opening over 1.5 million checking and savings accounts and 500,000 credit cards on behalf of customers without their consent. The Consumer Financial Protection Bureau issued $100 million in fines, the largest in the agency's five-year history, along with $50 million in fines from the City and County of Los Angeles, and $35 million in fines from the Office of Comptroller of the Currency. The scandal was caused by an incentive-compensation program for employees to create new accounts. It led to the firing of nearly 5,300 employees and $5 million being set aside for customer refunds on fees for accounts the customers never wanted.Carrie Tolstedt, who headed the department, retired in July 2016 and received $124.6 million in stock, options, and restricted Wells Fargo shares as a retirement package.
On October 12, 2016, John Stumpf, the then chairman and CEO, announced that he would be retiring amidst the scandals. President and Chief Operating Officer Timothy J. Sloan succeeded Stumpf, effective immediately. Following the scandal, applications for credit cards and checking accounts at the bank plummeted. In response to the event, the Better Business Bureau dropped accreditation of the bank. Several states and cities ended business relations with the company.
An investigation by the Wells Fargo board of directors, the report of which was released in April 2017, primarily blamed Stumpf, who it said had not responded to evidence of wrongdoing in the consumer services division, and Tolstedt, who was said to have knowingly set impossible sales goals and refused to respond when subordinates disagreed with them. Wells Fargo coined the phrase, “Go for Gr-Eight” – or, in other words, aim to sell at least 8 products to every customer. The board chose to use a clawback clause in the retirement contracts of Stumpf and Tolstedt to recover $75 million worth of cash and stock from the former executives.
In February 2020, the company agreed to pay $3 billion to settle claims by the United States Department of Justice and the Securities and Exchange Commission. The settlement did not prevent individual employees from being targets of future litigation. The Federal Reserve put a limit to Wells Fargo's assets, as a result of the scandal. In 2020, Wells Fargo sold $100 million in assets to stay under the limit.
Racketeering lawsuit for mortgage appraisal overcharges
In November 2016, Wells Fargo agreed to pay $50 million to settle allegations of overcharging hundreds of thousands of homeowners for appraisals ordered after they defaulted on their mortgage loans. While banks are allowed to charge homeowners for such appraisals, Wells Fargo ally savings bank charged homeowners $95 to $125 on appraisals for which the bank had been charged $50 or less. The plaintiffs had sought triple damages under the U.S. Racketeer Influenced and Corrupt Organizations Act on grounds that sending invoices and statements with fraudulently concealed fees constituted mail and wire fraud sufficient to allege racketeering.
Financing of Dakota Access Pipeline
Wells Fargo is a lender on the Dakota Access Pipeline, a 1,172-mile-long (1,886 km) underground oil pipeline transport system in North Dakota. The pipeline has been controversial regarding its potential impact on the environment.
In February 2017, the city councils of Seattle, Washington and Davis, California voted to move $3 billion of deposits from the bank due to its financing of the Dakota Access Pipeline as well as the Wells Fargo account fraud scandal.
Failure to comply with document security requirements
In December 2016, the Financial Industry Regulatory Authority fined Wells Fargo $5.5 million for failing to store electronic documents in a "write once, read many" format, which makes it impossible to alter or destroy records after they are written.
Doing business with the gun industry and NRA
From December 2012 through February 2018, Wells Fargo reportedly helped two of the biggest firearms and ammunition companies obtain $431.1 million in loans. It also handled banking for the National Rifle Association and provided bank accounts and a $28-million line of credit. In 2020, the company said that it is winding down its business with the National Rifle Association.
Discrimination against female workers
Further information: Glass ceiling
In June 2018, about a dozen female Wells Fargo executives from the wealth management division met in Scottsdale, Arizona to discuss the minimal presence of women occupying senior roles within the company. The meeting, dubbed "the meeting of 12", represented the majority of the regional managing directors, of which 12 out of 45 were women. Wells Fargo had previously been investigating reports of gender bias in the division in the months leading up to the meeting. The women reported that they had been turned down for top jobs despite their qualifications, and instead the roles were occupied by men. There were also complaints against company president Jay Welker, who is also the head of the Wells Fargo wealth management division, due to his sexist statements regarding female employees. The female workers claimed that he called them "girls" and said that they "should be at home taking care of their children."
Overselling auto insurance
On June 10, 2019, Wells Fargo agreed to pay $385 million to settle a lawsuit accusing it of allegedly scamming millions of auto-loan customers into buying insurance they did not need from National General Insurance.
Failure to Supervise Registered Representatives
On August 28, 2020, Wells Fargo agreed to pay a ulta store hours july 4 of $350,000 as well as $10 million in restitution payments to certain customers after the Financial Industry Regulatory Authority accused the company of failing to reasonably supervise two of its registered representatives that recommended that customers invest a high percentage of their assets in high-risk energy securities in 2014 and 2015.
Steering customers to more expensive retirement accounts
In April 2018, the United States Department of Labor launched a probe into whether Wells Fargo was pushing its customers into more expensive retirement plans as well as into retirement funds managed by Wells Fargo itself.
Alteration of documents
In May 2018, the company discovered that its business banking group had improperly altered documents about business clients in 2017 and early 2018.
With CEO John Stumpf paid 473 times more than the median employee, Wells Fargo ranked number 33 among the S&P 500 companies for CEO—employee pay inequality. In October 2014, a Wells Fargo employee earning $15 per hour emailed the CEO—copying 200,000 other employees—asking that all employees be given a $10,000 per year raise taken from a portion of annual corporate profits to address wage stagnation and income inequality. After being contacted by the media, Wells Fargo responded that all employees receive "market competitive" pay and benefits significantly above US federal minimums.
Pursuant to Section 953(b) of the Dodd-Frank Wall Street Reform and Consumer Protection Act, publicly traded companies are required to disclose (1) the median total annual compensation of all employees other than the CEO and (2) the ratio of the CEO's annual total compensation to that of the median employee.
Wells Fargo & Company reported Total CO2e emissions (Direct + Indirect) for the twelve months ending 31 December 2020 at 776 Kt (-87 /-10.1% y-o-y). There has been a consistent declining trend in reported emissions since 2015.
In popular culture
Wells Fargo stagecoaches are mentioned in the song "The Deadwood Stage (Whip-Crack-Away!)" in the 1953 film Calamity Jane performed by Doris Day: "With a fancy cargo, care of Wells and Fargo, Illinois - Boy!".
- ^Wack, Kevin (February 26, 2020). "How New York became Wells Fargo's new center of power". American Banker.
- ^Eisen, Ben; Kellaher, Colin (August 10, 2021). "Wells Fargo's Black Takes Over as Chairman From Noski". The Wall Street Journal.
- ^ abcdefghij"Wells Fargo & Company Annual Report 2020"(PDF). wellsfargo.com. Wells Fargo.
- ^Wack, Kevin (February 26, 2020). "How New York became Wells Fargo's new center of power". American Banker.
- ^"FRB: Large Commercial Banks".
- ^Gray, Melinda (February 7, 2014). "Wells Fargo Tops List of World's Most Valuable Bank Brands". Chicago Agent.
- ^"The Top 500 Banking Brands, 2014". The Banker. February 3, 2014.
- ^"Fortune 500: Wells Fargo". Fortune.
- ^Flitter, Emily; Appelbaum, Binyamin; Cowley, Stacy (February 2, 2018). "Federal Reserve Shackles Wells Fargo After Fraud Scandal". The New York Times.
- ^Hugh Son (September 27, 2021). "Wells Fargo pays $37 million to resolve Justice Department claims it defrauded currency customers". CNBC. Retrieved September 27, 2021.
- ^"Butterfield Overland Mail". California State Parks.
- ^"William George Fargo". Encyclopædia Britannica.
- ^Engstrand, Iris. "Wells Fargo: California's Pioneer Bank"(PDF). San Diego History.
- ^"Enlisting the stagecoach during WWI". Wells Fargo. June 29, 2018.
- ^"Wells and Fargo start shipping and banking company". History.com.
- ^"A SALUTE TO Closest bank of america branch SOCIETY'S CORPORATE PATRONS: WELLS FARGO BANK, N.A." Southern California Quarterly. 1984.
- ^"Surviving and thriving in the Great Depression". Wells Fargo. March 13, 2019.
- ^"Wells Fargo, American Trust Merge as the 11th Biggest Bank". The New York Times. March 26, 1960.
- ^Kovner, Guy (February 12, 2015). "Santa Rosa power broker, philanthropist Henry Trione dies at 94". The Press Democrat.
- ^"Wells Fargo Bank Is Given Holding Company Approval". The New York Times. January 31, 1969.
- ^Johnson, Patt (August 1, 2017). "Business icon who helped bring Wells Fargo to Des Moines dies at 87". The Des Moines Register.
- ^MAHONY, EDMUND H. (February 29, 2008). "NOT GUILTY PLEA IN 1983 ARMED ROBBERY". Hartford Courant.
- ^Madden, Richard L. (December 11, 1983). "WELLS FARGO THEFT, 3 MONTHS LATER: ONLY TANTALIZING LEADS TO $7 MILLION". The New York Times.
- ^Pollack, Andrew (May 31, 1986). "CROCKER ABSORBED INTO WELLS FARGO". The New York Times.
- ^Gruber, William (February 8, 1986). "WELLS FARGO BUYS CROCKER". Chicago Tribune.
- ^"Wells Fargo & Company 1987 Annual Report"(PDF).
- ^Lawrence M. Fisher (January 16, 1988). "Wells Fargo to Buy Barclays in California". The New York Times.
- ^"Regulators seize Great American Bank". United Press International. August 9, 1991.
- ^"Wow! Two decades of banking online". Wells Fargo. May 18, 2015.
- ^Hansell, Saul (January 25, 1996). "Wells Fargo Wins Battle for First Interstate". The New York Times.
- ^Baker, David R. (December 19, 2004). "When hostile takeovers backfire". San Francisco Chronicle.
- ^Svaldi, Aldo (June 12, 1998). "Wells Fargo learned hard way about deals". American City Business Journals.
- ^"Wells Fargo, Norwest pair". CNN. June 8, 1998.
- ^O'Brien, Timothy L. (June 9, 1998). "Wells Fargo And Norwest Plan Merger". The New York Times.
- ^"Wells Fargo to Buy Alaskan Bank". Los Angeles Times. December 22, 1999.
- ^"H.D. Vest to be acquired by Internet company Blucora for $580 million". Investment News. October 15, 2015.
- ^"Wells Fargo Names Stumpf CEO; Kovacevich Remains Chair". CNBC. Reuters. June 27, 2007.
- ^"Wells Fargo, Greater Bay Bancorp Agree to Merge" (Press release). PR Newswire. May 4, 2007.
- ^Said, Carolyn (May 5, 2007). "Wells Fargo buys bank / Greater Bay has 41 branches in the Bay Area". San Francisco Chronicle.
- ^"Wells Fargo Gobbles Up Greater Bay Bancorp". The New York Times. May 7, 2007.
- ^Barris, Mike (May 4, 2007). "Wells Fargo Agrees to Acquire Greater Bay Bancorp for $1.5 Billion". The Wall Street Journal.
- ^"Wells Fargo to purchase Placer Sierra Bank, owner of four Bank of Lodi branches". Lodi News-Sentinel. January 9, 2007.
- ^"Wells Fargo to Purchase CIT Unit". American Banker. June 22, 2007.
- ^Stempel, Jonathan (June 22, 2007). "Wells Fargo to buy CIT Group's construction unit". Reuters.
- ^"Wells to acquire United Bancorp of Wyoming". American City Business Journals. January 15, 2008.
- ^Chad Eric Watt (August 13, 2008). "Wells Fargo to acquire Century Bank". American City Business Journals.
- ^"Wells Fargo agrees to buy Wachovia; Citi objects". USA Today. Associated Press. October 4, 2008.
- ^"Court tilts Wachovia fight toward Wells". WABC-TV. October 5, 2008.
- ^"Court tilts Wachovia fight toward Wells Fargo". Times Internet. October 6, 2008.
- ^"Wells Fargo plans to buy Wachovia; Citi ends talks". USA Today. Associated Press. October 9, 2008.
- ^"Capital Purchase Program Transaction Report"(PDF). November 17, 2008.
- ^Landler, Mark & Dash, Eric (October 15, 2008). "Drama Behind a $250 billion Banking Deal". The New York Times.
- ^Temple, James (May 9, 2009). "Wells Fargo stock offering raises $8.6 billion". San Francisco Chronicle.
- ^Barr, Alistair (December 23, 2009). "Citigroup and Wells Fargo exit TARP". MarketWatch.
- ^"Wells Fargo buys North Coast Surety Insurance". American City Business Journals. April 20, 2009.
- ^Ahmed, Azam (August 15, 2011). "Wells Fargo Brings Citadel's Investment Banking Unit Aboard". The New York Times.
- ^Moyer, Liz; Rieker, Matthias (August 16, 2011). "Wells Fargo Scores Citadel Investment-Bank Talent, Deals". The Wall Street Journal.
- ^Touryalai, Halah (August 16, 2011). "Don't Read Too Much Into Wells Fargo's Deal With Citadel". Forbes.
- ^"Wells Closest bank of america branch to Acquire Merlin Securities, LLC" (Press release). Business Wire. April 27, 2012.
- ^"Wells Fargo to Buy Prime Brokerage Firm". The New York Times. April 27, 2012.
- ^"Wells Fargo Rebrands Merlin Securities to Wells Fargo Prime Services" (Press release). Business Wire. December 3, 2012.
- ^"Wells Fargo Announces the Sale of Its Majority Stake in The Rock Creek Group" (Press release). Business Wire. July 5, 2018.
- ^"Wells Fargo Agrees to Acquire GE's Railcar Leasing Business". Bloomberg News. September 30, 2015.
- ^Koren, James Rufus (October 14, 2015). "Wells Fargo buys 3 GE units focused on equipment financing". Los Angeles Times.
- ^Dillet, Romain (March 27, 2017). "Wells Fargo will let you use Apple Pay and Android Pay to withdraw money". TechCrunch.
- ^Levitt, Hannah (June 5, 2018). "Wells Fargo sells all its branches in Indiana, Michigan, Ohio". Bloomberg News.
- ^Egan, Matt (June 5, 2018). "Wells Fargo sells all its branches in three Midwestern states". CNN.
- ^Moise, Imani (June 5, 2018). "Wells Fargo pulls back from U.S. Midwest, selling 52 branches to Flagstar". Reuters.
- ^"Wells Fargo Plans To Eliminate Up To 26,450 Jobs By 2020". HuffPost. Reuters. September 21, 2018.
- ^Egan, Matt (September 20, 2018). "Wells Fargo plans to cut up to 26,500 jobs over three years". CNN.
- ^LIBERTO, JENNIFER (March 28, 2019). "Wells Fargo CEO Quits In Wake Of Consumer Financial Scandals". NPR.
- ^"Principal Completes Acquisition of Wells Fargo Institutional Retirement & Trust Business" (Press release). Principal Financial Group. July 1, 2019.
- ^Egan, Matt (September 27, 2019). "Wells Fargo names financial veteran Charles Scharf as its new CEO". CNN.
- ^"Wells Fargo Agrees to Sell Private Student Loan Portfolio" (Press release). Business Wire. December 18, 2020.
- ^Truong, Kevin (December 21, 2020). "Wells Fargo sells off private student loan business". American City Business Journals.
- ^"TD Bank Group completes acquisition of Wells Fargo's Canadian Direct Equipment Finance Business" (Press release). Toronto-Dominion Bank. May 3, 2021.
Why Bank of America branches are disappearing
The future of banking is here -- and it's mobile.
Bank of America(BAC) announced on Monday that deposits made on mobile devices like smartphones and tablets are outpacing those made at branches for the first time.
Customers logged into Bank of America's mobile app 1.4 billion times last quarter.
The rapid adoption of mobile banking has allowed big banks to massively shrink the number of expensive branches they operate.
Bank of America's vast network of branches fell to 4,411 at the end of June, compared with 4,542 a year ago. The company has 1,720 fewer branches than it did in June 2008. That's a 28%drop.
At the same time, Bank of America's active mobile banking users jumped by 11% to 25.3 million over the past year.
It's not just Millennials turning to their smartphones for banking.
"The common theory is that this is all young kids," Bank of America CEO Brian Moynihan told analysts on Monday. "But there's not enough young kids in anybody's customer base to drive this kind of activity. It has broadened out dramatically."
Moynihan even highlighted "high" levels of mobile banking activity by "grandparents."
Related: Wells Fargo finds even more customers that it overcharged
Big banks have plowed hundreds of millions of dollars into new technology aimed at luring customers online.
For instance, Bank of America launched in April an artificial intelligence-driven financial assistant named Erica. The number of Erica users has already reached 2 million.
Bank of America has also teamed up with Wells Fargo(CBEAX), JPMorgan Chase and other big banks to build Zelle, a digital payment service that rivals PayPal(PYPL) and Venmo. More than $25 closest bank of america branch moved through Zelle during the first quarter, up 15% from the final three months of 2017.
Traditional banks are under pressure from Silicon Valley to innovate. Amazon, Apple(AAPL) and Facebook(FB) are all reportedly experimenting with pushes into finance. Amazon(AMZN), for instance, is considering adding a person-to-person payments feature to its popular Alexa virtual assistant, The Wall Street Journal reported in April.
Related: Are Apple, Amazon and Facebook the future of banking?
Shutting branches allows traditional banks to cut costs. Bank of America's non-interest expenses dropped by 5% last quarter, the most in two years.
It's not just Bank of America shrinking its branch network. JPMorgan(JPM), the No. 2 US bank by branches, trimmed its count by 2% over the past year to 5,091.
Wells Fargo still has 5,751 branches, but the bank shut more than 200 branches last year. In January, Wells Fargo announced plans to pull the plug on another 800 locations by 2020. The bank also agreed in June to sell all of its branches in Indiana, Michigan and Ohio.
Big banks aren't giving up on branches entirely. Bank of America plans to open more than 500 new branches across the United States over the next four years. After recently expanding into Denver, Minneapolis and Indianapolis, Bank of America is moving into Ohio and Pittsburgh.
A Bank of America spokeswoman said, however, that the plan to build new branches and renovate others may not increase the company's overall branch count.
In other words, Bank of America may continue to shut more branches than it opens.
CNNMoney (New York) First published July 16, 2018: 12:45 PM ET
Is Bank of America Going Out of Business?
Bank of America was formed through NationsBank's acquisition of BankAmerica in 1998. Since then, Bank of America has become the second-largest banking institution in the U.S. after JPMorgan Chase. Bank of America is also the eighth-largest bank in the world. So, why is the second-largest bank in the U.S. locking the doors on so many of its branches?
Article continues below advertisement
Bank of America website outage
In addition to struggles amid the COVID-19 pandemic, Bank of America customers reported a website and app outage at the beginning of October 2021. The beginning of the month is a crucial time because many people's bills are due. The outage impacted thousands of customers using Bank of America digital banking.
Article continues below advertisement
Why are so many Bank of America branches closed right now?
When the COVID-19 pandemic started, it wasn't unusual for people to walk up to their local bank and discover that the doors were at least temporarily locked.
Colleen Haggerty, senior vice president of media relations for Bank of America, spoke about the temporary closures early on. According to Haggerty, "These temporary closures occur in areas where foot traffic is low, or when staffing is not sufficient for all to remain open.When a center closes, we work to reopen it as soon as possible.Clients also always have the ability to transact most financial needs through our ATM network, mobile and online banking."
Article continues below advertisement
Days turned into weeks, which turned into months and many banks remained closed to the public. Six months later, many local Bank of America branches across the U.S. are still closed. Consumers want to know if their money is still safe.
Article continues below advertisement
Is Bank of America going out of business?
Bank of American hasn't made any announcements regarding its imminent closure. In fact, the bank's website shows a clear happy state bank locations amarillo to keep its customers connected during this time. Bank of America wants to devote all of the necessary resources to help ensure clients' and staff members' personal safety while maintaining all of its banking services.
Most of Bank of America's staff members have been working from home. At the height of the COVID-19 pandemic, 150,000 Bank of America employees worked from home, which is about midwest one bank oskaloosa percent of its total workforce. As branches open, more workers are returning to the field. However, like many companies that deal with the public, Bank of America is being cautious about how many employees and customers are allowed closest bank of america branch its brick-and-mortar locations.
Article continues below advertisement
How Bank of America responded to the COVID-19 pandemic
Bank of America was been very responsive to the COVID-19 pandemic. The company shifted 72 percent of its total workforce to a work from a home model and pledged a robust $100 million commitment to support communities facing challenges due to the COVID-19 outbreak. Most of the funds were used to increase medical response capacity, address food insecurity, and boost access to learning in the wake of nationwide school closures.
Article continues below advertisement
Bank of America CEO Brian Moynihan said that the bank won't have layoffs during the COVID-19 pandemic. Morgan Stanley and Citigroup also promised not to have layoffs during the coronavirus outbreak. With several banks closing up and moving to an all-digital model, time will tell if Moynihan is able to keep his word.
Article continues below advertisement
Has the COVID-19 pandemic impacted the way banking is done?
Many traditional banks are under pressure to move to an all-digital model or at least a mostly-digital one. Some people will always prefer to deal with cash, checks, or speaking to a physical person compared to digital banking. Right now, in-person banking isn't as possible as it used to be, but times are changing.
Shutting down branches allows traditional banks to cut costs. Bank of America has slowly reduced its branch network, which lowered the bank's non-interest expenses by 5 percent last quarter.
Article continues below advertisement
Warren Buffett is bullish on Bank of America stock.
Bank of America, like many other banks, is rationalizing the branch network at a time when many customers have been pivoting towards digital banking. However, fears of the bank going out of business seem unfounded. Incidentally, Berkshire Hathaway is the largest shareholder in the bank.
While Warren Buffett has sold the stake in several banks over the last year, he increased the stake in Bank of America. He made an exception for the stock and increased the stake beyond 10 percent. Buffett has a self-imposed limit on the stakes in banks below 10 percent. Currently, the stock is the second-largest holding in Berkshire Hathaway's portfolio after Apple.
Select a state
U.S. Bank, U.S. Bancorp Investments and their representatives do not provide tax or legal advice. Each individual's tax and financial situation is unique. You should consult your tax and/or legal advisor for advice and information concerning your particular situation.
For U.S. Bancorp Investments:
Investment products and services are available through U.S. Bancorp Investments, the marketing name for U.S. Bancorp Investments, Inc., an investment adviser and a brokerage subsidiary of U.S. Bancorp and affiliate of U.S. Bank.
For U.S. Bank:
U.S. Bank is not responsible for and does not guarantee the products, services or performance of U.S. Bancorp Investments.
Mortgage and home equity products are offered by U.S. Bank National Association. Deposit products are offered by U.S. Bank National Association. Member FDIC.
The creditor and issuer of U.S. Bank credit cards is U.S. Bank National Association, pursuant to separate licenses from Visa U.S.A. Inc., MasterCard International Inc. and American Express. American Express is a federally registered service mark of American Express.
Equal Housing Lender