Wells Fargo History free essay sample

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. 998- 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 hi s friend’s accounts, while receiving a 0,000 cut. We will write a custom essay sample on Wells Fargo History or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page B. What was their role as a bank in the years leading up to the financial crisis? 2000In 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 asset in the changing interest environment. This was important because it eased the concern of increasing interest rates because it allowed the homeowner to access their home equity at a fixed rate for a chosen term. This term could have been three, five or seven years. During the term, the homeowners could pay the minimum payment, which was only the interest, or ay toward the principle. The only requirement was that the account remained open. 2008Before the Financial Crisis, and still today Wells Fargo is known as the largest home mortgage lender in the country. Recently, in more than two years, revenue at Wells Fargo rose 6%. Wells Fargo was the least hurt by the mortgage crisis in 2008 than any other large bank in the U. S. This is because Wells Fargo has a conservative approach to ho meowner lending. 2011In 2011, Wells Fargo reported a record net income of $3. 4 billion, which was 21% higher than the previous year. C. Did they have a history of lending sub-prime mortgages? Unfortunately, Wells Fargo was involved in various law suites after the financial crisis. In 2012 the government filed a law suit against Wells Fargo due to the distribution of faulty mortgages. It was stated that the federal government backed up the certified loans; however when they discovered problems with the loan, Wells Fargo failed to notify, by law, HUD. The attorneys report that Wells Fargo had at least a decade of misconduct starting around 2001. This payment was the largest that the Fed had ever imposed in a consumer case. Wells Fargo’s history of lending sub-prime mortgages has been mostly the illegal distribution to their borrowers. According to Huff Post Business, more than 10,000 borrowers were inappropriately directed into a more expensive subprime mortgages. Wells Fargo was the largest mortgage lender in the U. S.