History of Wells Fargo - Wikipedia, the free encyclopedia. This article outlines the history of Wells Fargo & Company from its origins to its merger with Norwest Corporation and beyond. The new company chose to retain the name of . Vermont native Henry Wells and New Yorker William G. For More Information: If your company is interested in joining the National Corporate Team Program, visit American Cancer Society Workplace Solutions to learn more. The program will provide you a meaningful opportunity to. Wells Fargo and American Express Announce Credit Card Issuing Partnership LoyaltyEdge from American Express Fargo watched the California economy boom with keen interest. Before either Wells or Fargo could pursue opportunities offered in the Western United States, however, they had business to attend to in the Eastern United States. Wells, founder of Wells and Company, and Fargo, a partner in Livingston, Fargo and Company, and mayor of Buffalo, NY from 1. Wells Fargo Mortgage Modification Lawsuits Revived by Court. In a separate action involving Wells Fargo, a U.S. Court of Appeals held that the bank must face lawsuits by home loan borrowers for refusing to offer them permanent.
In 1. 84. 9 a new rival, John Warren Butterfield, founder of Butterfield, Wasson & Company, entered the express business. Butterfield, Wells and Fargo soon realized that their competition was destructive and wasteful, and in 1. American Express Company. Soon after the new company was formed, Wells, the first president of American Express, and Fargo, its vice- president, proposed expanding their business to California. Fearing that American Express's most powerful rival, Adams and Company (later renamed Adams Express Company), would acquire a monopoly in the West, the majority of the American Express Company's directors balked. Undaunted, Wells and Fargo decided to start their own business while continuing to fulfill their responsibilities as officers and directors of American Express. The original board of directors comprised Wells, Fargo, Johnston Livingston, Elijah P. Morgan, James Mc. Kay, Alpheus Reynolds, Alexander M. C. Of these, Wells, Fargo, Livingston and Mc. Kay were also on the board of American Express. Morgan of Aurora, Cayuga County, New York, was appointed Wells Fargo's first president. They commenced business May 2. The New York Times. The company's arrival in San Francisco was announced in the Alta California of July 3, 1. The immediate challenge facing Morgan and Danford N. Barney, who became president in November 1. At the time, California regulated neither the banking nor the express industry, so both fields were wide open. Anyone with a wagon and team of horses could open an express company; and all it took to open a bank was a safe and a room to keep it in. Because of its comparatively late entry into the California market, Wells Fargo faced well- established competition in both fields. From the beginning, the fledgling company offered diverse and mutually supportive services: general forwarding and commissions; buying and selling of gold dust, bullion, and specie (or coin); and freight service between New York and California. Under Morgan's and Barney's direction, express and banking offices were quickly established in key communities bordering the gold fields, and a network of freight and messenger routes was soon in place throughout California. Barney's policy of subcontracting express services to established companies, rather than duplicating existing services, was a key factor in Wells Fargo's early success. Mail service. Wells Fargo & Co. Express building circa 1. Stockton, CA. Wells Fargo & Co. A bank run on Page, Bacon & Company, a San Francisco bank, began when the collapse of its St. Louis, Missouri parent was made public. The run soon spread to other major financial institutions all of which, including Wells Fargo, were forced to close their doors. The following Tuesday, Wells Fargo reopened in sound condition, despite a loss of one- third of its net worth. Wells Fargo was one of the few financial and express companies to survive the panic, partly because it kept sufficient assets on hand to meet customers' demands rather than transferring all its assets to New York. First, it faced virtually no competition in the banking and express business in California after the crisis; second, Wells Fargo attained a reputation for dependability and soundness. From 1. 85. 5 through 1. Wells Fargo expanded rapidly, becoming the West's all- purpose business, communications, and transportation agent. Under Barney's direction, the company developed its own stagecoach business, helped start and then took over Butterfield Overland Mail, and participated in the Pony Express. This period culminated with the 'grand consolidation' of 1. Wells Fargo consolidated the ownership and operation of the entire overland mail route from the Missouri River to the Pacific Ocean and many stagecoach lines in the western states. In its early days, Wells Fargo participated in the staging business to support its banking and express businesses. But the character of Wells Fargo's participation changed when it helped start the Overland Mail Company. Overland Mail was organized in 1. John Butterfield, the third founder of American Express, was made Overland Mail's president. In 1. 85. 8 Overland Mail was awarded a government contract to carry United States Postal Service mail over the southern overland route from Memphis and St. As Overland Mail's indebtedness to Wells Fargo climbed, Wells Fargo became increasingly disenchanted with Butterfield's management strategy. In March 1. 86. 0, Wells Fargo threatened foreclosure. As a compromise, Butterfield resigned as president of Overland Mail, and control of the company passed to Wells Fargo. Russell, Majors and Waddell launched the privately owned and operated Pony Express. By the end of 1. 86. Pony Express was in deep financial trouble; its fees did not cover its costs and, without government subsidies and lucrative mail contracts, it could not make up the difference. After Overland Mail, by then controlled by Wells Fargo, was awarded a $1 million government contract in early 1. American Civil War had forced the discontinuation of the southern line), Wells Fargo took over the western portion of the Pony Express route from Salt Lake City, Utah to San Francisco. Russell, Majors & Waddell continued to operate the eastern leg from Salt Lake City to St. Joseph, Missouri, under subcontract. Overland mail and express services were continued, however, by the coordinated efforts of several companies. From 1. 86. 2 to 1. Wells Fargo operated a private express line between San Francisco and Virginia City, Nevada; Overland Mail stagecoaches covered the Central Nevada Route from Carson City, Nevada, to Salt Lake City; and Ben Holladay, who had acquired the business of Russell, Majors & Waddell, ran a stagecoach line from Salt Lake City to Missouri. The Salt Lake Daily Telegraph (Utah Territory)By 1. Holladay had built a staging empire with lines in eight western states and was challenging Wells Fargo's supremacy in the West. A showdown between the two transportation giants in late 1. Wells Fargo's purchase of Holladay's operations. The 'grand consolidation' spawned a new enterprise that operated under the Wells Fargo name and combined the Wells Fargo, Holladay, and Overland Mail lines and became the undisputed stagecoach leader. Barney resigned as president of Wells Fargo to devote more time to his own business, the United States Express Company; Louis Mc. Lane replaced him when the merger was completed on November 1, 1. Although the Central Pacific Railroad, already operating over the Sierra Mountains to Reno, Nevada, carried Wells Fargo's express, the company did not have an exclusive contract. Moreover, the Union Pacific Railroad was encroaching on the territory served by Wells Fargo stagelines. Barney, Danforth Barney's brother and cofounder of United States Express Company, replaced Mc. Lane as president in 1. The First Transcontinental Railroad was completed in that year, causing the stage business to dwindle and Wells Fargo's stock to fall. The Tevis group also started buying up Wells Fargo stock at its sharply reduced price. On October 4, 1. 86. William Fargo, his brother Charles, and Ashbel Barney met with Tevis and his associates in Omaha, Nebraska. There Wells Fargo agreed to buy the Pacific Union Express Company at a much- inflated price and received exclusive express rights for ten years on the Central Pacific Railroad and a much needed infusion of capital. All of this, however, came at a price: control of Wells Fargo shifted to Tevis. Lloyd Tevis replaced Fargo as president of Wells Fargo. July 6, 1. 87. 0The company expanded rapidly under Tevis' management. The number of banking and express offices grew from 4. During this period, Wells Fargo also established the first Transcontinental Express line, using more than a dozen railroads. The company first gained access to the lucrative East Coast markets beginning in 1. California; had opened branch banks in Virginia City, Carson City, and Salt Lake City, Utah by 1. New York City by 1. In 1. 88. 5 Wells Fargo also began selling money orders. Valentine, Sr., a long time Wells Fargo employee, was made president of the company. In 1. 87. 6 the locations were separated, with the banking department moving to a building at the northeast corner of California and Sansome Streets. The bank moved in 1. Sansome and Market Streets, where it remained until 1. Hellman's Nevada Bank in 1. Salt Lake City Bank was sold to the Walker Brothers there in 1. The New York City branch remained until the Wells Fargo & Company bank merged with Hellman's bank in 1. Harriman, a prominent financier and dominant figure in Southern Pacific Railroad and Union Pacific Railroad, had gained control of Wells Fargo. Harriman reached an agreement with Isaias W. Hellman, a Los Angeles banker, to merge Wells Fargo's bank with the Nevada National Bank, founded in 1. Nevada silver moguls James Graham Fair, James Cair Flood, John William Mackay, and William S. O'Brien, to form the Wells Fargo Nevada National Bank. Hellman, president; Isaias W. Bigelow, vice presidents; Frederick L. Lipman, cashier; Frank B. King, George Grant, William Mc. Gavin and John E. Miles, assistant cashiers; E. H. Herrin and Dudley Evans, directors. By 1. 90. 6, Levi Strauss had also joined the board. Caldwell was elected president in October 1. Wells Fargo - Wikipedia, the free encyclopedia. An older Wells Fargo branch, located in Berkeley, CA. Wells Fargo's corporate headquarters in San Francisco. Wells Fargo & Company is an American internationalbanking and financial services holding company headquartered in San Francisco, California, with . Wells Fargo is the second largest bank in deposits, home mortgage servicing, and debit cards. The firm's primary U. S. Following the mergers, the company transferred its headquarters to Wells Fargo's headquarters in San Francisco and merged its operating subsidiary with Wells Fargo's operating subsidiary in Sioux Falls. Along with JPMorgan Chase, Bank of America, and Citigroup, Wells Fargo is one of the . Wells Fargo also has around 2,0. Now, in 2. 01. 3 its share is closer to 2. Wells Fargo also provides private student loan consolidation and student loans for parents. Wholesale banking. This includes lending, treasury management, mutual funds, asset- based lending, commercial real estate, corporate and institutional trust services, and capital markets and investment banking services through Wells Fargo Securities. One area that is very profitable to Wells Fargo, however, is asset- based lending: lending to large companies using accounts receivable and inventory as collateral, though less traditional assets are often included in the collateral package. Historically, this type of lending has been done when normal routes of raising funds, such as the Capital Markets or unsecured bank loans, have been exhausted. The main business unit associated with this activity is Wells Fargo Capital Finance. Wells Fargo also owns Eastdil Secured, which is described as a . One venture is Wells Fargo Rail, which in 2. GE Capital Rail Services and merged in with First Union Rail. Wealth and Investment Management. Louis. 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. Mutual funds are offered under the Wells Fargo Advantage Funds brand name. 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. It is the third largest brokerage firm in the United States as of the third quarter of 2. The size and financial performance of the group is not disclosed publicly, but analysts believe the investment banking group houses approximately 4,5. By comparison, two of Wells Fargo. Morgan Chase generated approximately $5. This charter was issued to First National Bank of Philadelphia on June 2. Office of the Comptroller of the Currency. Thus, the first charter passed from First National Bank of Philadelphia to Wells Fargo through its 2. Wachovia, which had inherited it through one of its many acquisitions. History. Displays include original stagecoaches, photographs, gold nuggets and mining artifacts, the Pony Express, telegraph equipment and historic bank artifacts. The company also operates a museum about company history in the Pony Express Terminal in Old Sacramento State Historic Park in Sacramento, California, which was the company's second office. Fargo (Mayor of Buffalo, NY from 1. American Express, formed Wells Fargo & Company to provide express and banking services to California. Wells Fargo gained control of Butterfield Overland Mail Company, leading to operation of the western portion of the Pony Express. Railway Express Agency (REA). The government took control of the express company. The bank begins rebuilding but with a focus on commercial markets. After the war, REA is privatized and continues service. Wells Fargo Nevada merged with the Union Trust Company to form the Wells Fargo Bank & Union Trust Company. Northwest Bancorporation was formed as a banking association. Wells Fargo & Union Trust shortened its name to Wells Fargo Bank. Wells Fargo merged with American Trust Company to form the Wells Fargo Bank American Trust Company. Wells Fargo American Trust again shortened its name to Wells Fargo Bank. Wells Fargo converted to a federal banking charter, becoming Wells Fargo Bank, N. A. 1. 96. 9: Wells Fargo & Company holding company was formed, with Wells Fargo Bank as its main subsidiary. Northwest Bancorporation acquires consumer finance firm Dial Finance which is renamed Norwest Financial Service the following year. Northwest Bancorporation is renamed Norwest Corporation. White Eagle, largest U. S. Vest Financial Services for $1. This news came four days after the Federal Deposit Insurance Corporation (FDIC) made moves to have Citigroup buy Wachovia for $2. Citigroup protested Wachovia's agreement to sell itself to Wells Fargo and threatened legal action over the matter. However, the deal with Wells Fargo overwhelmingly won shareholder approval since it valued Wachovia at about seven times what Citigroup offered. To further ensure shareholder approval, Wachovia issued Wells Fargo with preferred stock holding 3. The injunction was overturned late in the evening on October 5, 2. New York state appeals court. Those negotiations failed. Sources say that Citigroup was unwilling to take on more risk than the $4. FDIC- backed deal (with the FDIC incurring all losses over $4. Citigroup did not block the merger, but indicated they would seek damages of $6. Wachovia. Treasury during 2. On May 1. 1, 2. 00. Wells Fargo announced an additional stock offering which was completed on May 1. The remaining $4. Wells Fargo redeemed the $2. US Treasury. As part of the redemption of the preferred stock, Wells Fargo also paid accrued dividends of $1. October 2. 00. 8. 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 it 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. Prudential Securities, A. G. Environmental Protection Agency's Climate Leaders program, Wells Fargo aims to reduce its absolute greenhouse gas emissions from its U. S. By working together, we can do even more to protect and preserve natural resources for future generations. A Wells Fargo spokesman responded that . 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. And 7. 1 percent of those are in predominantly black neighborhoods. District Judge William Alsup for overdraft practices designed to . This settlement amount makes the NMS the second largest civil settlement in U. S. Oklahoma held out and agreed to settle with the banks separately. On April 5, 2. 01. Wells Fargo to pay $3. It prefers to rely on the ignorance of borrowers or their inability to fund a challenge to its demands, rather than voluntarily relinquish gains obtained through improper accounting methods. The other, began in 2. National Fair Housing Alliance has found . Department of Justice for allegedly discriminating against African- American and Hispanic borrowers from 2. Wells Fargo agreed to pay $1. The suit alleges that Wells Fargo defrauded the Federal Housing Administration (FHA) over the past ten years, underwriting over 1. FHA backed loans when over half did not qualify for the program. This suit is the third allegation levied against Wells Fargo in 2. Also in May, the New York attorney- general, Eric Scheidermann, announced a lawsuit against Wells Fargo over alleged violations of the national mortgage settlement, a $2. US. Schneidermann claimed Wells Fargo had violated rules over giving fair and timely serving. This is illegal according to New York credit card laws. There was a $2 million penalty with the other $2 million going towards restitution to customers. In October 2. 01. Wells Fargo employee earning $1. CEO . After being contacted by the media, Wells Fargo responded that all employees receive . By reducing its holdings to less than 5%, Wells Fargo will no longer be required to disclose some financial dealings with GEO. The Consumer Financial Protection Bureau issued $1. City and County of Los Angeles, and $3. Office of Comptroller of the Currency. It lead to the firing of nearly 5,3. Retrieved 2. 8 December 2. Keller and Katherine Chiglinsky (September 1. Retrieved September 1. Retrieved 2. 4 July 2. Retrieved July 2. Retrieved 2. 8 December 2. The Wall Street Journal. Retrieved April 4, 2. Retrieved April 4, 2. California State Railroad Museum Foundation. Retrieved 2. 4 February 2. San Diego History Center. Retrieved 2. 4 February 2. Fisher (January 1. Vest to be acquired by Internet company Blucora for $5. San Francisco Business Times. Dallas Business Journal. Retrieved February 2, 2. Reuters (Press release). Retrieved October 4, 2. Retrieved October 5, 2. Retrieved October 1. Retrieved January 4, 2. Retrieved February 4, 2. Retrieved December 3. Charlotteobserver. Silicon Valley Business Journal. Retrieved 5 August 2. Retrieved August 5, 2. Retrieved June 1. Retrieved December 3. Bank Accused of Pushing Mortgage Deals on Blacks. Retrieved May 4, 2. Smith, Michael (June 2. Retrieved December 6, 2. Gelles, Jeff (August 1. The Philadelphia Inquirer. Retrieved August 1. Retrieved 1. 5 June 2. Retrieved December 2. Retrieved December 2. Retrieved December 2. Associated Press and the Express. Department of Justice Regarding Mortgages. Retrieved August 1. Sues Wells Fargo for Faulty Mortgages. The Wall Street Journal. Retrieved October 1. Accuses Bank of America of a 'Brazen' Mortgage Fraud. Retrieved October 2. Property Casualty 3. Retrieved 5 February 2. Corporations Paid More to Lobby Congress Than Income Taxes, 2. International Business Times. Archived from the original on 2. December 2. 01. 1. Retrieved 2. 6 December 2. Corporations That Pay The Highest Taxes. Dolan (November 1. Archived from the original on 2. Retrieved November 8, 2.
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