ADVERTISEMENT

Wells Fargo

American multinational financial services company

Wells Fargo is one of the 'Big Four Banks' in the U.S., with operations in 35 countries. It is the fourth-largest bank in the U.S. by total assets, offering various financial services and having a significant global presence. The company is known for its cross-selling strategy and faced the Wells Fargo cross-selling scandal. Wells Fargo originated one out of every four home loans in the U.S. and is considered a systemically important financial institution.

Related

Silicon Valley Bank Collapse Bank of America Silicon Valley Bank Citigroup Morgan Stanley Savings and Loan Crisis Goldman Sachs J.P. Morgan & Co.Credit Suisse Barclays

Timeline

Wells Fargo History Museum Opens

The Wells Fargo History Museum in San Francisco's financial district showcases nearly two centuries of the company's history.

Henry Wells starts his own business

After recognizing the demand for extending services west of Buffalo, New York; Chicago; and St. Louis, Henry Wells left Harnden’s company to start a business of his own. This decision marked a pivotal moment in the history of Wells Fargo.

Wells and Fargo partnership

In 1845, Wells worked with Fargo, hiring him as a messenger, to extend his express service to Cleveland, Chicago, and other points in the Midwest. Fargo used that experience to later set up business under his name and hire his own messengers.

Founding of Wells Fargo

Wells Fargo, a financial services company, was established in 1852 in San Francisco.

Founding of Wells, Fargo & Co.

On March 18, 1852, Henry Wells and William G. Fargo founded Wells, Fargo & Co. to provide express and banking services to California, which was growing rapidly due to the California Gold Rush.

Government Contract for Overland Mail

In 1858, Overland Mail was awarded a government contract to carry the U.S. mail over the southern overland route from St. Louis to California. Wells Fargo was the primary lender and banker for Overland Mail from the beginning.

Wells Fargo's Threat to Foreclose

In March 1860, Wells Fargo threatened to foreclose as a compromise due to increasing disenchantment with Butterfield's management strategy. Butterfield resigned as president of Overland Mail, and control of the company passed to Wells Fargo.

Charter No. 1 Issued

Charter No. 1, the first national bank charter issued in the United States, was issued to First National Bank of Philadelphia on June 20, 1863, by the Office of the Comptroller of the Currency.

Grand Consolidation of Wells Fargo

The 'Grand consolidation' united Wells Fargo, Holladay, and Overland Mail stage lines under the Wells Fargo name.

Wells Fargo and Pacific Union Express Company Agreement

On October 4, 1869, 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 Acquires Control of Wells Fargo

Lloyd Tevis, a friend of the Central Pacific 'Big Four' and holder of rights to operate an express service over the Transcontinental Railroad, acquires control of the company.

Nationalization of Express Operations

The U.S. federal government nationalized Wells Fargo's express operations due to World War I, creating the U.S. Railway Express Agency (REA) as a federal agency to run express services.

Nationalization of Wells Fargo's Express Franchise

As a wartime measure, the US Federal Government nationalized Wells Fargo's express franchise into a federal agency known as the US Railway Express Agency. The bank began rebuilding with a focus on commercial markets.

Publication of 'Wells Fargo: Advancing the American Frontier'

In 1949, Edward Hungerford published 'Wells Fargo: Advancing the American Frontier' which provides insights into the history of Wells Fargo.

Merger of Wells Fargo Bank and American Trust Company

In 1960, Wells Fargo Bank merged with American Trust Company to form the Wells Fargo Bank American Trust Company, which was later renamed Wells Fargo Bank in 1962. This merger created the 11th largest banking institution in the United States and significantly expanded Wells Fargo's presence in California.

Wells Fargo Charter Conversion

In 1968, Wells Fargo changed from a state to a federal banking charter, allowing it to set up subsidiaries for businesses such as equipment leasing and credit cards. This move was made to avoid the need to create special divisions within the bank.

Formation of Wells Fargo & Company

In 1969, Wells Fargo formed a holding company, Wells Fargo & Company, and purchased the rights to its own name from the American Express Corporation. This allowed Wells Fargo to use its name in any area of financial services it chose.

Wells Fargo's Key Policy Changes

In 1973, Wells Fargo made significant policy changes by targeting the medium-sized corporate and consumer loan businesses with higher interest rates. This strategic shift led to the elimination of excess debt and a much healthier balance sheet by 1974.

Wells Fargo's International Operations Challenges

In 1975, Wells Fargo faced challenges in its international operations, including significant financial losses from its holdings in West German and London-based banks. The bank responded by slowing its overseas expansion program and focusing on developing its own overseas branches.

Wells Fargo's legal victory in California

In 1978, Wells Fargo secured a major legal victory in California, upholding the constitutionality of the state's statutory nonjudicial foreclosure procedure. This victory ensured the bank's ability to provide credit to borrowers at affordable rates.

White Eagle Robbery at Wells Fargo Armored Truck Depot

In September 1983, a Wells Fargo armored truck depot in West Hartford, Connecticut, was the victim of the White Eagle robbery. The robbery was organized by Los Macheteros and involved an insider armored truck guard. It was the largest US bank theft to date with $7.1 million stolen, making it a significant event in the history of bank robberies.

Purchase of Greater Bay Bancorp

Wells Fargo purchased Greater Bay Bancorp for $1.5 billion, adding 41 more branches in the San Francisco Bay Area, further expanding its network.

Wells Fargo's Acquisition of Wachovia

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. This acquisition significantly expanded Wells Fargo's presence and influence in the banking industry.

Wells Fargo's Receipt of Funds via the Emergency Economic Stabilization Act

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. This financial support was a crucial event during the economic crisis of that time.

Redemption of Preferred Stock Issued to the United States Department of the Treasury

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, Wells Fargo also paid accrued dividends, marking a significant financial transaction.

National Mortgage Settlement (NMS)

The five largest mortgage servicers agreed to a settlement with the US Federal Government and 49 states over improper foreclosure practices in the 2010 United States foreclosure crisis, including 'robo-signing' and foreclosing without standing via MERS. The settlement required the servicers to provide about $26 billion in relief to distressed homeowners and in direct payments to the federal and state governments.

Federal Judge Orders Wells Fargo to Pay $3.1 Million

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 a homeowner with $24,000 in mortgage fees.

Wells Fargo Settles SEC Charges

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.

Wells Fargo Settles Suit with 24,000 Florida Homeowners

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.

CFPB fines Wells Fargo

The Consumer Financial Protection Bureau fined Wells Fargo $100 million for the widespread illegal practice of secretly opening unauthorized accounts. The bank was also required to pay an estimated $2.5 million in refunds to customers and hire an independent consultant to review its procedures.

Stumpf resigns as CEO of Wells Fargo

John Stumpf resigned as the CEO of Wells Fargo on October 12, roughly a month after the fines by the CFPB were announced. He was replaced by COO Timothy Sloan.

Wells Fargo announces branch closures

After decreased profitability following the scandal, Wells Fargo announced it would close over 400 of its approximately 6000 branches by the end of 2018.

Wells Fargo $142 million customer compensation settlement

In March 2017, Wells Fargo agreed to settle for $142 million with consumers who had accounts opened in their names without permission. The settlement money repaid fraudulent fees and paid damages to those affected.

Wells Fargo board blames Stumpf and Tolstedt for scandal

In April 2017, an investigation by the Wells Fargo board primarily blamed Stumpf and Tolstedt for the scandal, with the board choosing to use a clawback clause in the retirement contracts of the former executives to recover $75 million worth of cash and stock.

Wells Fargo cost-cutting measures

In May 2017, Wells Fargo announced plans to cut costs through investment in technology while decreasing reliance on its sales organization. The bank also revised up its 2017 efficiency-ratio goal from 60 to 61.

Wells Fargo Account Fraud Scandal

On February 2, 2018, the Wells Fargo account fraud scandal resulted in the Federal Reserve barring Wells Fargo from growing its nearly $2 trillion asset base any further until the company fixed its internal problems to the satisfaction of the Federal Reserve.

Wells Fargo fined for failure to supervise representatives

Wells Fargo agreed to pay a fine of $350,000 and $10 million in restitution payments to certain customers after being accused of failing to reasonably supervise two registered representatives who recommended high-risk energy securities to customers in 2014 and 2015.

Wells Fargo Fines by United States Justice Department

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.

Wells Fargo's donation to the American Red Cross for Ukrainian refugees

Wells Fargo announced a $1 million donation to the American Red Cross to aid Ukrainian refugees fleeing from the Russian invasion.

Wells Fargo Technical Glitch Misstating Balances

In March 2023, Wells Fargo blamed a technical glitch for misstating the balances of customers' accounts, in many cases incorrectly deeming the customers as having a negative bank balance.

Partnership between TD Jakes Group and Wells Fargo for inclusive communities

Wells Fargo formalized a 10-year partnership with TD Jakes Group to create inclusive communities for people of all income levels, committing approximately $1 billion to fund projects aligned with the overall strategy.

End of the Timeline
Wells Fargo

Popular

American retired Navy SEAL and ultramarathon runner.

David Goggins

German automotive manufacturer

Short-form video hosting service

TikTok

Intellectual stance questioning objective reality and grand narratives

American multinational investment bank and financial services company.

ADVERTISEMENT

Recently Added

Brighton & Hove Albion F.C.

English professional football club in Brighton and Hove

Professional football club in West London

Burnley F.C. is a football club in Lancashire

A.F.C. Bournemouth

Football club with roots dating back to 1890

Gustave Courbet

French Realism painter and innovator

ADVERTISEMENT