History of Wells Fargo facts for kids
This article tells the story of Wells Fargo & Company after it joined with another company called Norwest Corporation. The new company decided to keep the famous name "Wells Fargo". So, this is about what happened next!
Contents
Growing Bigger: Buying Other Companies (1999–2000)
Wells Fargo continued a tradition from Norwest by buying many smaller companies each year. In 1999, they bought 13 companies. The biggest one was Mercantile Financial Enterprises, Inc. in Brownsville, Texas.
In 2000, Wells Fargo grew even faster. They started offering banking services in two new states: Michigan and Alaska. This happened by buying Michigan Financial Corporation and the National Bank of Alaska. Wells Fargo also bought First Commerce Bancshares, Inc. in Lincoln, Nebraska, and a company called Ragen MacKenzie Group Incorporated in Seattle.
Later in 2000, Wells Fargo made its biggest deal since joining with Norwest. They bought First Security Corporation, a large bank based in Salt Lake City, Utah. This made Wells Fargo the biggest bank in states like New Mexico, Nevada, Idaho, and Utah. It also made them the largest bank in the entire Western United States! After this, Wells Fargo had a lot of money and many employees.
What Happened From 2000 Until Now
In 2001, Wells Fargo bought a company called H.D. Vest Financial Services. They later sold it in 2015.
More Companies Join Wells Fargo (2007–2008)
Wells Fargo kept growing by buying more companies. In 2007, they bought Placer Sierra Bank and Greater Bay Bancorp. They also acquired a construction unit from CIT. In 2008, they bought United Bancorporation of Wyoming and Century Bancshares of Texas.
New Leaders at Wells Fargo (2007)
In June 2007, John Stumpf became the new Chief Executive Officer (CEO) of Wells Fargo. Richard Kovacevich stayed on as the chairman.
Wells Fargo Buys Wachovia (2008)
In September 2008, there was a big financial problem in the country. Many banks were struggling. Wells Fargo decided to try and buy a troubled bank called Wachovia Corporation.
At first, Wachovia was going to sell its banking parts to Citigroup. But then, Wachovia decided to accept Wells Fargo's offer to buy all of its businesses for a much higher price.
There was a bit of a legal fight because Citigroup said they had a special agreement with Wachovia. However, a court eventually allowed the deal between Wells Fargo and Wachovia to go forward.
This merger was a huge deal! It created a giant bank that stretched from one side of the United States to the other. It had a lot of money and millions of customers. Wells Fargo's business grew into many new states in the Eastern and Southern parts of the country. The government (the Federal Reserve) approved the deal, and it was completed on January 1, 2009.
Government Help During the 2008 Financial Crisis
During the financial crisis in 2008, the U.S. government helped many banks. Wells Fargo received $25 billion from the government. This help was like a loan to make sure the bank stayed strong during tough economic times.
Later, in May 2009, Wells Fargo raised more money on its own. By December 2009, Wells Fargo paid back all the money it received from the U.S. Treasury, plus extra payments called dividends.
Starting Wells Fargo Securities
In 2009, Wells Fargo started a new part of its business called Wells Fargo Securities. This group handles "capital markets" and "investment banking." These are ways for companies to raise money and for big investors to buy and sell stocks and bonds. Wells Fargo got this part of its business when it bought Wachovia. Before that, Wells Fargo didn't do much investment banking.
Wachovia had a strong investment banking business that came from earlier mergers. Over time, Wells Fargo Securities has included parts of many older financial companies.
Wells Fargo History Museum
Wells Fargo has a museum in San Francisco, California, at 420 Montgomery Street. The museum shows off old stagecoaches, photos, gold nuggets, and tools from mining. You can also see things related to the Pony Express and old bank items. There's even a gift shop! In 2015, some robbers broke into the museum and stole gold nuggets. Wells Fargo used to have other museums, but they are now closed.
See also
- List of Wells Fargo directors
- List of Wells Fargo presidents
