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21-481: This article outlines the history of Wells Fargo & Company from its merger with Norwest Corporation and beyond. The new company chose to retain the name of " Wells Fargo " and so this article is about the history after the merger. Continuing the Norwest tradition of making numerous smaller acquisitions each year, Wells Fargo acquired 13 companies during 1999 with total assets of $ 2.4 billion. The largest of these

42-674: A Seattle -based regional brokerage firm, Ragen MacKenzie Group Incorporated. In October 2000, Wells Fargo made its largest deal since the Norwest-Wells Fargo merger when it paid nearly $ 3 billion in stock for First Security Corporation , a $ 23 billion bank holding company based in Salt Lake City, Utah , and operating in seven western states. Wells Fargo thereby became the largest banking franchise in terms of deposits in New Mexico , Nevada , Idaho , and Utah; as well as

63-417: A $ 1.5 billion transaction. In June 2007, Wells Fargo acquired CIT 's construction unit. In January 2008, Wells Fargo acquired United Bancorporation of Wyoming. In August 2008, Wells Fargo acquired Century Bancshares of Texas. In June 2007, John Stumpf was named chief executive officer of the company, and Richard Kovacevich remained as chairman. During the financial panic of September 2008, Wells Fargo made

84-494: A bid to purchase the troubled Wachovia Corporation. Although at first inclined to accept a September 29 agreement brokered by the Federal Deposit Insurance Corporation to sell its banking operations to Citigroup for $ 2.2 billion, on October 3, Wachovia accepted Wells Fargo's offer to buy all of the financial institutions for $ 15.1 billion. On October 4, 2008, a New York state judge issued

105-582: A coast-to-coast super-bank with $ 1.4 trillion in assets and 48 million customers and expanded Wells Fargo's operations into nine Eastern and Southern states. There would be big overlaps in operations only in California and Texas, much less so in Nevada, Arizona, and Colorado. In contrast, the Citigroup deal would have resulted in a substantial overlap, since both banks' operations were heavily concentrated in

126-412: A temporary injunction blocking the transaction from going forward while the situation was sorted out. Citigroup alleged that they 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

147-565: 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. Norwest Corporation Too Many Requests If you report this error to the Wikimedia System Administrators, please include

168-615: The U.S. Treasury under the Troubled Asset Relief Program's Capital Purchase Program. 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 the U.S. Treasury and U.S. taxpayers to $ 1.441 billion since the preferred stock was issued in October 2008. Wells Fargo Securities was established in 2009 to house Wells Fargo's new capital markets group, which it obtained during

189-532: The Charlotte, North Carolina–based First Union bank. The brokerage firm changed its name to Wheat First Union, reflecting its newly acquired status. In April 1999, First Union acquired Chicago -based investment bank and brokerage Everen Capital Corp. for $ 1.1 billion. Separately, Wachovia Corporation acquired the brokerage firm Interstate Johnson Lane in April 1999, and changed the name to IJL Wachovia. In 2001,

210-790: The East and Southeast. The proposed merger was approved by the Federal Reserve as a $ 12.2 billion all-stock transaction on October 12 in an unusual Sunday order. The acquisition was completed on January 1, 2009. On October 28, 2008, Wells Fargo was the recipient of $ 25B of the Emergency Economic Stabilization Act Federal bail-out in the form of a preferred stock purchase. Tests by the Federal government revealed that Wells Fargo needed an additional $ 13.7 billion in order to remain well-capitalized if

231-522: The FDIC to reach an amicable solution to the impasse. Those negotiations failed. Sources say that 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 indicated they would seek damages of $ 60 billion for breach of an alleged exclusivity agreement with Wachovia. The merger created

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252-1007: The Wachovia acquisition. Prior to that point, Wells Fargo had little to no participation in investment banking activities, though Wachovia had a well-established investment banking practice which operated under the Wachovia Securities banner. Wachovia's institutional capital markets and investment banking business arose from the merger of Wachovia and First Union. First Union had bought Bowles Hollowell Connor & Co. on April 30, 1998 adding to its merger and acquisition , high yield , leveraged finance , equity underwriting, private placement , loan syndication , risk management , and public finance capabilities. Legacy components of Wells Fargo Securities include Wachovia Securities , Bowles Hollowell Connor & Co. , Barrington Associates, Halsey, Stuart & Co. , Leopold Cahn & Co. , Bache & Co. and Prudential Securities , and

273-492: The details below. Request from 172.68.168.132 via cp1112 cp1112, Varnish XID 945675878 Upstream caches: cp1112 int Error: 429, Too Many Requests at Thu, 28 Nov 2024 08:42:17 GMT Wachovia Securities Wachovia Securities grew through the mergers of multiple companies. Its oldest predecessor company, Leopold Cahn & Co. was founded in 1879. One of main Wachovia Securities' predecessor companies

294-399: The economy were to deteriorate further under stress test scenarios. On May 11, 2009, Wells Fargo announced an additional stock offering, which was completed on May 13, 2009, raising $ 8.6 billion in capital. The remaining $ 4.9 billion in capital is planned to be raised through earnings. On December 23, 2009, Wells Fargo redeemed the $ 25 billion of series D preferred stock issued to

315-518: The firm became known as Wachovia Securities when parent companies of Wheat First Union and IJL Wachovia, First Union and Wachovia Corporation, merged. The newly formed Wachovia then merged the brokerage operations to form Wachovia Securities. Wachovia Securities and the Prudential Securities Division of Prudential Financial combined on July 1, 2003. Wachovia owned 62% of this entity, while Prudential Financial owned 38%. At

336-642: The investment banking arm of Citadel LLC . In 2016, the Wells Fargo cross-selling scandal led to the resignation of CEO John Stumpf and resulted in fines of $ 185 million by the Consumer Financial Protection Bureau . The company operates the Wells Fargo History Museum at 420 Montgomery Street, San Francisco. Displays include original stagecoaches , photographs, gold nuggets and mining artifacts,

357-566: The largest banking franchise in the West overall. Following completion of the First Security acquisition, Wells Fargo had total assets of $ 263 billion with some 140,000 employees. In 2001, Wells Fargo acquired H.D. Vest Financial Services for $ 128 million, but sold it in 2015 for $ 580 million. In January 2007, Wells Fargo acquired Placer Sierra Bank. In May 2007, Wells Fargo acquired Greater Bay Bancorp, which had $ 7.4 billion in assets, in

378-517: The second largest brokerage firm in the United States with $ 1.17 trillion retail client assets under management. In 2008 Wachovia was bought out by Wells Fargo for $ 15.1 billion. This was approximately $ 7 a share, which is nearly an 80 percent premium closing price of $ 3.91. On May 1, 2009, the retail brokerage legally changed its name to Wells Fargo Advisors. Wachovia's institutional capital markets and investment banking business arose from

399-428: The time, the new firm had client assets of $ 532.1 billion, making it the nation's third largest full service retail brokerage firm based on assets. Much of the retail brokerage came from Prudential's previous acquisition of Bache & Co. In May 2007, Wachovia Securities announced the purchase of A. G. Edwards of St. Louis, Missouri . Following the acquisition, as of October 1, 2007, the Wachovia Securities became

420-484: Was founded in 1934 as the investment firm of J.C. Wheat & Co. Wheat fostered growth through mergers, including the 1971 merger with First Securities that created Wheat First Securities, Inc. and the 1988 merger with Butcher & Singer, a successful Philadelphia-based securities firm established in 1910; the firm then became known as Wheat First Butcher Singer. In August 1997, the privately held Wheat First Butcher Singer agreed to be acquired for just under $ 500 million by

441-598: Was the February purchase of Brownsville, Texas -based Mercantile Financial Enterprises, Inc., which had $ 779 million in assets. The acquisition pace picked up in 2000, with Wells Fargo expanding its retail banking into two more states: Michigan , through the buyout of Michigan Financial Corporation ($ 975 million in assets), and Alaska , through the purchase of National Bank of Alaska , with $ 3 billion of assets. Wells Fargo also acquired First Commerce Bancshares , Inc. of Lincoln, Nebraska , which had $ 2.9 billion in assets, and

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