Wells Fargo

Wells Fargo was founded by Henry Wells and William Fargo along with other investors in New York City on March 18, 1852. The company was originally established to provide banking services and express mail services in California, which was experiencing a gold rush at the time. Wells Fargo's express services quickly became vital due to the difficult communication and transportation challenges in the rapidly expanding US western territories.

In July 1905, Wells Fargo & Co's banking services were separated from its express services. The banking operations merged with the Nevada National Bank to create the Wells Fargo Nevada National Bank. Meanwhile, the express service continued as Wells Fargo & Company Express. This division marked a significant shift in the focus of Wells Fargo towards banking.

The stock market crash of 1929 and the subsequent Great Depression had profound effects on American banks, including Wells Fargo. Throughout the 1930s, Wells Fargo faced difficulties similar to others in the financial sector but managed to survive the harsh economic conditions, partly due to its merging with other banks and restructuring its operations.

In June 1960, Wells Fargo merged with the American Trust Company to form Wells Fargo Bank American Trust Company. This merger expanded Wells Fargo's reach and capability in the banking sector, enabling it to provide more comprehensive financial services throughout the United States.

In April 1986, Wells Fargo acquired Crocker National Corporation, which was one of the largest bank mergers at the time. This acquisition greatly expanded Wells Fargo's presence in the California banking market. The deal was valued at approximately $1.08 billion and helped Wells Fargo become a significant player in banking on the West Coast.

On November 2, 1996, Wells Fargo completed a merger with First Interstate Bancorp. This merger was significant as First Interstate was a major bank with a strong presence in the Western United States, and the merger helped consolidate Wells Fargo's position in the market. It was reported to be one of the largest bank mergers in the 1990s, valued at over $11 billion.

On October 3, 2008, Wells Fargo announced it would acquire Wachovia in a $15 billion deal. This acquisition was a turning point during the financial crisis of 2007-2008, as Wachovia was on the verge of collapse. This acquisition significantly expanded Wells Fargo's footprint across the United States, making it the fourth-largest bank in the country.

On September 8, 2016, the Wells Fargo fake accounts scandal came to light when regulators revealed that the bank had created millions of unauthorized accounts on behalf of customers without their knowledge. The bank was fined $185 million by regulators. The scandal severely damaged Wells Fargo's reputation and led to significant legal and regulatory challenges.

In March 2019, Wells Fargo CEO Tim Sloan resigned amid struggles to address the aftermath of the fake accounts scandal and restore the bank's reputation. Sloan had been with Wells Fargo for decades and took over as CEO in 2016. His resignation was part of efforts to bring new leadership and fresh perspectives to resolve ongoing issues faced by the bank.

In February 2020, the Federal Reserve announced it would cap the growth of Wells Fargo until the bank improved its governance and risk management practices following the fallout of the fake accounts scandal. This unprecedented move by the Federal Reserve was aimed at ensuring that Wells Fargo made significant reforms and became compliant with regulatory expectations.