Mach 18, 1852: The Wells Fargo's Company

Wells Fargo’s deposits totaled $847.9 billion at December 31, 2010, compared with $824.0 billion at December 31, 2009. (p 53 on 10k)

Businessmen in New York establish Wells, Fargo and Company, destined to become the leading freight and banking company of the West.

In 1852, Henry Wells and William Fargo founded Wells Fargo & Co. to serve the West during the American Gold Rush. There was a panic crisis where many business owners saw their doors closing in 1855. Following the survival of Wells Fargo, they were given two advantages. The first advantage being virtually no competition in California, and the second being Wells Fargo had already made a name for itself being reputable and dependable in their work. From 1855 to 1866 Wells Fargo saw exponential growth.

In the year eighteen fifty-two, two men by the names of Henry Wells and William Fargo chose to establish a monetary administrations organization that we particularly know today to be Wells Fargo (Wells Fargo, 2017), which actually is quite significant. Before establishing the organization, Mr. Wells and Mr. Fargo chose to ground their organization in five standards which generally turned into their five very essential esteems. Their first standard being "individuals as an aggressive esteem" which implies an association with a colleague will literally prompt a definitely superior association with the clients, or so they particularly thought. Second "morals" Wells Fargo prides its self on being a straightforward organization and

Henry Wells, William Fargo and several others signed the articles of association on the 18th of March, 1852. On the 18th of July, 1852, the California branch of Wells Fargo & Company opened in San Francisco and Sacramento. Wells Fargo & Company realized that they needed to get through to their customers in their own language. In 1855, Wells Fargo & Company began hiring translators to well… translate. In 1858, Wells Fargo & Company began shipping money… and people across the 2,757 miles. They decided to join in by helping to financially aid the Butterfield Line. (A transcontinental stagecoach line). The line provided twice-weekly service to Texas and other Southwestern states.

Wells Fargo is an American multinational diversified financial services company. The company operates throughout the world. It is one of the largest banks in the US in the state of assets. Moreover, Wells Fargo is the largest market capitalization bank in the US. It takes the second category in the field of deposits, delivery of home mortgage services, and delivery of credit cards. The company has its headquarters in Francisco, California. The company has coverage of more than twenty-four states in the US. In every state, it has established its headquarters that act as distribution and storage regions for the company's products and services. The company offers insurance, banking, mortgage, and consumer financing through the sale and distribution of its networks across the US. The advantages of Wells Fargo Company are widely distributed: they have helped it realize a stable market in the United States and around the globe.

The Sarbanes-Oxley Act of 2002 was put in place to prevent corporations from committing accounting fraud or corruption. When a corporation manages somehow to get passed all the laws they do anything to keep the corruption going by covering up everything. With this going on the company’s main focus is keep the lies going and firing whoever is in the way. Wells Fargo has stated that they have fire over a hundred thousand people throughout the nation for being a part of the illegal activity in the company. Unfortunately for Wells Fargo employees are coming out from hiding telling their side of the story.

According to Emily Glazer of the Wall Street Journal, Wells Fargo’s Sales Practice Scandal is a result of their corporate culture. The upper level executives could be getting nothing as their bonuses this year as the board continues to decide. This is because those men and women are responsible for the actions of those who they employ/supervise Making money has been the firm’s primary goal for many years and the higher up’s all the way down to the lower managers are responsible for creating this type of environment. According to the Wall Street Journal “One manager…in an email peppered with exclamation points and capital letters…urged her employees to ignore the bosses and get sales up at any cost, says someone who saw the email.” This is a perfect example of terrible managing. Throwing ethics and good conduct out the window just so that a few of the staff get bonuses at the year’s end is just wrong. In class, we constantly discuss the ethics involved in business and recently we’ve spent a lot of time on corporate culture. Shockingly enough, in last year’s annual report the company

Our paper today will be on Wells Fargo. Wells Fargo is an American bank that was created in 1852 by Henry Wells and James Fargo. It is the second largest bank in the USA in terms of market cap, operates in over 42 countries around the world, and has over 260,000 employees.

Wells Fargo was established in 1852 by Henry Wells and Williams Fargo who joined a group of other investors to form a transportation and banking company. In 1849, gold was discovered in California, which encouraged a huge demand for its cross country shipping and by 1852 Wells Fargo shipped its first consignment of gold. Wells Fargo also established merger deals with Pony expresses which made them one of the pioneers of pony transportation. This company later expanded to a company that offered not just pony and gold transportation services, but also offered banking services by purchasing gold and selling paper bank drafts as good as gold. In 1905, the banking branch of the company merged with the Nevada National Bank and established its new headquarters in San Francisco. ("Wells and Fargo start shipping and banking company", 2016).

Wells Fargo & Company was incorporated on the 24th of January 1929 in San Francisco as a bank holding company that provides financial services on a retail and commercial level through the internet and banking offices etc. It operates in 3 segments being investment management, wholesale banking and community banking in the form of loans, insurance and just wealth management. It is an international bank that has different administrative facilities in locations that include Texas, Las Vegas, California, Portland, etc. In September 2016, the bank received bad publicity due to its fake accounts scandal. Things revealed themselves as the company fired 5,300 employees being 1% of their workforce (Kouchaki, 2016).

In 1998 the financial execution of Wells Fargo, and also its stock cost, experienced this bungled merger, leaving the bank powerless against being assumed control itself as saving money combination proceeded with unabated. This time, Wells Fargo went into an amicable merger concurrence with Norwest Corporation of Minneapolis, which was declared in June 1998. The arrangement was completed in November of that year and was esteemed at $31.7 billion. In spite of the fact that Norwest was the ostensible survivor, the blended organization held the Wells Fargo name as a result of the last 's more prominent open acknowledgment and the previous ' local undertones. The combined organization stayed situated in San Francisco in view of the bank 's $54 billion in stores in California versus $13 billion in Minnesota. The leading man of Wells Fargo, Paul Hazen, was named administrator of the new organization, while the head of Norwest, Richard Kovacevich, got to be president and CEO. In any case, Wells Fargo holds Norwest 's pre-1998 stock value history, and every single SEC recording before 1998 are recorded under Norwest, not Wells Fargo. With the new innovation Wells Fargo initiated as the nation seventh largest bank with $196 billion in assets, $130 billion in deposits and 15 million retail banking and finance. Over two thousands of branches in twenty one states from Ohio to California are banking operating. The alliance between Norwest and Wells Fargo continued a great deal more

Wells Fargo has been in business for more than 160 years, being one of only a dozen U.S. public companies still in its founding business under its founding name. Since the early 1990s, Wells has grown from a network of small Midwestern banks into a national company with a growing global presence (Stumpf, 2012). Wells is domestically well known for having thousands of products to offer and more than 80 businesses standing.

It’s not very uncommon to see headlines of money hunger CEO’s or even a small group of decision making conducting unethical behaviors in their best interests. Generally, those conducting the unethical behaviors have the opportunity to gain from their actions. In the Wells Fargo scandal, this is not the case. This scandal was not acted out at the top, but yet through the front line employees. This scandal was also unusual due to the amount of

Wells Fargo was founded on March 18th, 1852 by Henry Wells and William Fargo to serve the West during the gold rush. The company offered Banking (buying gold and selling paper bank drafts as good as gold) and Express (rapid delivery of the gold and anything else valuable). They opened for business in San Francisco, and earned a reputation of trust by dealing rapidly and responsibly with people’s money. (History of Wells Fargo, n.d.)