Wells Fargo

Wells Fargo & Company
	File:Wells Fargo logo.svg Logo used since 2007
Company type	Public company
Industry	Financial services
Founded	March 18, 1852; 174 years ago in San Francisco, California, United States
Founder	Henry Wells, William G. Fargo
Headquarters	San Francisco, California, United States
Area served	Worldwide (35 countries)
Key people	Charles Scharf (CEO)
Products	Banking, investment management, mortgage loans, equipment financing, brokerage services
Number of employees	Not specified explicitly; mentions over 20,000 in back-office functions in India and Philippines
Parent	None
Website	www.wellsfargo.com

Wells Fargo & Company is a prominent American multinational financial institution with extensive international operations. Present in 35 countries, it caters to more than 70 million clients globally. Classified as a systemically important financial institution by the Financial Stability Board, Wells Fargo is considered one of the "Big Four Banks" in the United States, alongside JPMorgan Chase, Bank of America, and Citigroup.

The principal subsidiary, Wells Fargo Bank, N.A., lists its legal headquarters in Sioux Falls, South Dakota, while its corporate and executive headquarters are located in San Francisco, California and New York City. Ranking as the fourth-largest U.S. bank by total assets, Wells Fargo also holds top positions in deposits and market capitalization. The bank operates approximately 8,050 branches, 13,000 ATMs, and 2,000 independent mortgage branches. It stands as the second-largest originator of retail mortgages in the United States, responsible for one out of every four home loans and managing $1.8 trillion in mortgage servicing. Globally, it is recognized for having one of the most valuable banking brands and is placed 47th on the Fortune 500 list.

In addition to conventional banking services, Wells Fargo provides equipment financing through subsidiaries such as Wells Fargo Rail and delivers investment management and brokerage solutions. A fundamental aspect of its business approach has been cross-selling—promoting the use of multiple products and services among customers—which played a significant role in revenue generation but also led to the widely publicized Wells Fargo cross-selling scandal.

Internationally, Wells Fargo maintains offices in key financial hubs including London, Dublin, Paris, Milan, Dubai, Singapore, Tokyo, Shanghai, Beijing, and Toronto. Its back-office functions employ over 20,000 personnel across India and the Philippines. Notably, Wells Fargo became the first major national U.S. bank to experience a successful unionization effort; by 2024, 20 branch locations have joined Wells Fargo Workers United-CWA.

Operating under Charter No. 1—the earliest national bank charter issued in the United States in 1863 originally granted to First National Bank of Philadelphia—Wells Fargo’s current corporate form emerged from a 1998 merger between the original Wells Fargo & Company and Minneapolis-based Norwest Corporation. The combined organization retained the Wells Fargo name and centralized its corporate headquarters in San Francisco. The 2008 acquisition of Wachovia, headquartered in Charlotte, further transformed Wells Fargo into a nationwide banking leader spanning coast to coast.

History

Wells Fargo & Company was established in 1852 by businessmen Henry Wells and William G. Fargo, who also co-founded American Express. The firm aimed to deliver express and banking services to California during the Gold Rush era, specializing in the rapid and cost-effective transportation of gold and express mail, outperforming the U.S. Mail by focusing on the burgeoning western region.

By the conclusion of the Gold Rush, Wells Fargo had become the leading provider of express and banking solutions in the western United States, financing and managing critical mail routes such as the Butterfield Overland Mail and the western segment of the Pony Express. The 1866 "Grand Consolidation" merged multiple stagecoach lines under Wells Fargo’s control. Lloyd Tevis took over as president in 1872 and expanded its railroad express business until 1892.

In 1905, Wells Fargo divided its banking operations from its express services; its banking division combined with Nevada National Bank to create Wells Fargo Nevada National Bank. During World War I, the federal government took control of its express operations, forming the Railway Express Agency (REA), which continued until 1975.

The 1923 merger with Union Trust Company resulted in Wells Fargo Bank & Union Trust Company. The name was simplified to Wells Fargo Bank in 1954; after merging with American Trust Company in 1958, it reverted to Wells Fargo Bank in 1962. The company adopted a federal banking charter as Wells Fargo Bank, N.A., in 1968 and established a holding company a year later.

Throughout the 1980s and 1990s, Wells Fargo pursued an aggressive acquisition strategy to increase market presence. Key acquisitions included Crocker National Bank (1986), Barclays Bank of California (1988), branches of Great American Bank (1991), and First Interstate Bancorp for $11.6 billion (1996). Some mergers presented integration difficulties.

Wells Fargo was among the first major U.S. banks to introduce internet banking with its launch in May 1995. In 1998, Norwest Corporation acquired Wells Fargo Bank; however, the merged company retained the Wells Fargo name and headquarters.

From 2000 onward, Wells Fargo grew through acquisitions such as National Bank of Alaska, First Security Corporation, Greater Bay Bancorp with $1.5 billion in assets, Placer Sierra Bank, CIT Group’s construction finance division, United Bancorporation of Wyoming, and Century Bancshares of Texas.

During the financial crisis in October 2008, Wells Fargo acquired Wachovia for $14.8 billion in stock after outbidding Citigroup. It received $25 billion from the U.S. Treasury under the Emergency Economic Stabilization Act and raised an additional $8.6 billion in capital by May 2009, repaying Treasury funds within that year.

Between 2009 and 2012, Wells Fargo expanded its insurance offerings by acquiring North Coast Surety Insurance Services and strengthened its investment banking capabilities by recruiting bankers from Citadel and purchasing Merlin Securities (later renamed Wells Fargo Prime Services). It increased its stake in The Rock Creek Group LP before divesting it back to management in 2018.

In 2015, Wells Fargo Rail purchased GE Capital Rail Services and integrated it with First Union Rail; it also acquired three equipment financing units from GE.

The company embraced technological advancements by introducing mobile wallet transactions via platforms like Wells Fargo Wallet, Android Pay, and Samsung Pay in 2017.

In June 2018, as part of a strategic realignment, Wells Fargo sold all physical branches located in Indiana, Michigan, and Ohio to Flagstar Bank. Later that year, it revealed plans to eliminate up to 26,450 positions by 2020 to achieve $4 billion in cost reductions.

Following pressures linked to scandal, CEO Tim Sloan resigned in March 2019; C. Allen Parker served as interim CEO until Charles Scharf assumed the role in September.

Wells Fargo continued refining its portfolio by divesting its Institutional Retirement & Trust business to Principal Financial Group (2019), selling its student loan portfolio (2020), offloading Canadian Direct Equipment Finance operations to Toronto-Dominion Bank (2021), and selling its asset management division (WFAM) to private equity firms GTCR and Reverence Capital Partners for $2.1 billion (2021). At sale time, WFAM managed $603 billion in assets and was rebranded as Allspring Global Investments.

In December 2024, Wells Fargo announced plans to sell its historic San Francisco headquarters as part of efforts to reduce its physical footprint—indicating a move away from California's primary financial district.

By June 2025, the company appointed a senior banker from Citigroup to head its activism defense team amid escalating challenges from activist shareholders regarding corporate governance.

Environmental performance

In 2022, Wells Fargo announced a target to cut absolute emissions from the oil and gas companies it finances by 26% by 2030 relative to 2019 figures. Critics highlight a contradiction given the bank’s position as the largest U.S. lender to fossil fuel enterprises and a leading global financier in this industry. The institution has set a goal to achieve net zero financed emissions by 2050, though this ambition has been met with doubt from environmental advocates. Wells Fargo has also pledged to avoid funding hydrocarbon exploration in the Arctic region and has invested in renewable energy initiatives.

By December 2024, Wells Fargo exited the Net-Zero Banking Alliance, indicating a modification in its climate-related pledges.

Regulatory challenges

Wells Fargo’s reputation has been tarnished by several regulatory probes. Following the 2018 scandal involving fraudulent accounts, the Federal Reserve restricted the bank’s asset growth—impacting an institution managing nearly $2 trillion—until it implemented adequate internal reforms. This restriction was lifted in June 2025, enabling Wells Fargo to pursue growth and broaden its corporate lending activities. CEO Charlie Scharf referred to this development as a critical turning point in the company’s recovery.

In September 2021, Wells Fargo incurred $37 million in fines tied to deceptive foreign-exchange trading activities. A Bloomberg report from 2022 revealed that in 2020, Wells Fargo was the sole major lender to deny more refinance applications from Black borrowers than it approved.

In December 2022, the bank faced a $3.7 billion penalty related to loan management issues. Early in 2023, Wells Fargo attributed inaccuracies in customer account balances to a technical malfunction. Furthermore, prison sentences were issued for employees involved in laundering money through fictitious accounts in Mexico.

1981 MAPS Wells Fargo embezzlement case

In 1981, an extensive embezzlement operation was exposed at Wells Fargo’s Beverly Drive branch involving assistant operations officer Lloyd Benjamin "Ben" Lewis. From 1978 through 1981, Lewis fabricated false debit and credit receipts benefiting boxing promoters Harold J. Smith and Sam "Sammie" Marshall—senior figures at Muhammad Ali Professional Sports, Inc. (MAPS), where Lewis also served as a director. Lewis received over $300,000 and pleaded guilty to charges of embezzlement and conspiracy; he cooperated with authorities by testifying against accomplices for a reduced sentence. Muhammad Ali earned a fee for lending his name but was not otherwise implicated.

Disproportionately higher fees for African-American and Hispanic borrowers

In 2009, Illinois Attorney General Lisa Madigan filed suit against Wells Fargo alleging that African American and Hispanic borrowers were steered into costly subprime loans. Wells Fargo maintained that its policies prohibit discrimination based on race. Nevertheless, affidavits disclosed that loan officers used racial slurs toward Black clients and referred to subprime products as "ghetto loans." Investigations found that Wells Fargo’s mortgage division actively targeted Black churches to market subprime loans. Data from Baltimore indicated that more than half of properties under foreclosure on Wells Fargo loans between 2005 and 2008 were vacant; notably, 71% of these were located in predominantly Black neighborhoods. The bank resolved the lawsuit by agreeing to pay $175 million—allocating $125 million to affected subprime borrowers and $50 million toward down payment assistance programs in impacted communities.

Inadequate oversight of suspected money laundering

In a March 2010 settlement with U.S. federal prosecutors, Wells Fargo admitted that from 2004 to 2007, Wachovia failed to adequately oversee and report suspicious money laundering activities linked to drug traffickers. This included cash transactions used to purchase four aircraft that were employed in transporting 22 tons of cocaine into Mexico.

Charges related to overdraft fees

In August 2010, a U.S. district court penalized Wells Fargo for overdraft policies that misrepresented how transactions were processed and the associated fees to customers. Subsequently, in May 2013, the bank disbursed $203 million to resolve a class-action lawsuit alleging the imposition of excessive overdraft charges on checking account holders.

Mortgage servicing settlements and penalties

On February 9, 2012, Wells Fargo, alongside four other leading mortgage servicers (Ally Financial, Bank of America, Citigroup, JPMorgan Chase), reached the National Mortgage Settlement (NMS) with the U.S. federal government and 49 states addressing improper foreclosure procedures during the 2010 housing crisis. The total $26 billion agreement allocated $5.4 billion to Wells Fargo—the second largest portion—and mandated adherence to 305 new standards for mortgage servicing.

On April 5, 2012, a federal court ordered Wells Fargo to pay $3.1 million in punitive damages after wrongly charging a homeowner in New Orleans $24,000 in mortgage fees due to misapplied payments. The judge condemned the bank’s actions as "highly reprehensible," emphasizing the dangers posed to borrowers dependent on accurate servicing. This judgment was upheld upon appeal in 2013.

In May 2013, New York Attorney General Eric Schneiderman filed suit against Wells Fargo for alleged breaches of the national mortgage settlement concerning fair and prompt servicing practices. The court ruled in favor of Wells Fargo in 2015.

SEC penalty for insufficient risk disclosure

On August 14, 2012, Wells Fargo agreed to a settlement of roughly $6.5 million with the SEC over charges related to inadequate disclosure of risks during the 2007 sale of mortgage-backed securities.

FHA loan underwriting lawsuit

In 2016, Wells Fargo settled for $1.2 billion under allegations brought under the False Claims Act regarding the underwriting of more than 100,000 FHA-backed loans, where over half of the applicants were unqualified. This followed a 2012 lawsuit initiated by U.S. Attorney Preet Bharara focused on questionable mortgage lending practices.

Settlement over inflated forced-place insurance premiums

In April 2013, Wells Fargo and QBE Insurance resolved a lawsuit involving approximately 24,000 Florida homeowners who were charged inflated premiums on forced-place insurance policies, agreeing to a $19.3 million settlement.

Breach of New York credit card regulations

In February 2015, Wells Fargo paid $4 million—including $2 million in penalties and restitution—for unlawfully acquiring an interest in borrowers’ homes as a condition for opening credit card accounts.

Tax obligations and lobbying expenditures

In December 2011, Public Campaign criticized Wells Fargo for spending $11 million on lobbying between 2008 and 2010 while simultaneously raising executive compensation and conducting layoffs despite reporting no federal tax liability due to losses sustained during the Great Recession. Nevertheless, by 2013, the company had paid $9.1 billion in income taxes.

Investment in the prison sector

Wells Fargo allocated client assets to GEO Group, an international operator of profit-driven private prison facilities. By March 2012, its holdings had expanded to more than 4.4 million shares, worth approximately $86.7 million. By November 2012, Wells Fargo had sold off one-third of its GEO shares, decreasing its ownership to 4.98%, thereby falling below the mandatory disclosure limit.

Hiring discrimination against African Americans

In August 2020, Wells Fargo consented to pay $7.8 million in back pay following accusations of discriminatory hiring practices affecting 34,193 African American candidates for positions such as teller, personal banker, customer service representative, and administrative roles. Additionally, the company pledged to employ 580 of the applicants who were impacted.

SEC insider trading resolution

In May 2015, analyst Gregory T. Bolan Jr. reached a settlement with the SEC by paying $75,000 in connection with allegations that he shared insider information with trader Joseph C. Ruggieri, who was ultimately not found guilty.

Wells Fargo unauthorized accounts scandal

In September 2016, Wells Fargo was fined a total of $185 million for creating more than 1.5 million unauthorized bank accounts and issuing 500,000 credit cards without customer consent. The Consumer Financial Protection Bureau (CFPB) levied a historic $100 million penalty—the largest it had ever imposed—alongside fines from Los Angeles authorities and the Office of the Comptroller of the Currency. This controversy arose from a high-pressure incentive scheme that motivated employees to open new accounts, resulting in nearly 5,300 terminations and a $5 million fund for reimbursing affected customers.

Carrie Tolstedt, head of the implicated division, retired in July 2016 with stock and options valued at $124.6 million. In October 2016, CEO John Stumpf resigned amid the scandal’s repercussions and was succeeded by President and COO Timothy J. Sloan. Following these events, applications for credit cards and checking accounts dropped significantly, while the Better Business Bureau revoked Wells Fargo’s accreditation. Numerous states and municipalities ended their business relationships with the bank.

An April 2017 board report primarily held Stumpf accountable for neglecting to address misconduct and Tolstedt responsible for enforcing unattainable sales goals under the "Go for Gr-Eight" campaign—targeting sales of eight products per customer. The board reclaimed $75 million from both executives through clawback provisions.

In February 2020, Wells Fargo agreed to a $3 billion settlement with the Department of Justice and SEC; individual employees remained liable to ongoing lawsuits. The Federal Reserve imposed restrictions on the bank’s asset growth, leading to a $100 million asset divestiture in 2020.

By December 2022, Wells Fargo reached a $3.7 billion agreement with the CFPB over misconduct involving fake accounts as well as mortgage and auto loan abuses—comprising $1.7 billion in civil penalties and $2 billion allocated to customers. In May 2023, the bank consented to pay $1 billion to settle a shareholder class-action lawsuit.

Racketeering claims regarding mortgage appraisal fees

In November 2016, Wells Fargo agreed to a $50 million settlement related to accusations that it overcharged homeowners for mortgage default appraisals. The bank billed fees ranging from $95 to $125 while actual costs were reportedly $50 or less. Plaintiffs sought triple damages under the U.S. Racketeer Influenced and Corrupt Organizations Act, asserting that deceptive billing practices amounted to mail and wire fraud.

Funding of the Dakota Access Pipeline

Wells Fargo provided financial backing for the contentious Dakota Access Pipeline, an underground oil conduit stretching 1,172 miles through North Dakota. The bank faced significant criticism due to environmental objections related to this project. In February 2017, the city councils of Seattle and Davis resolved to withdraw $3 billion in deposits from Wells Fargo, citing its role in funding the pipeline alongside concerns stemming from the account fraud scandal.

Noncompliance with document security standards

In December 2016, the Financial Industry Regulatory Authority imposed a $5.5 million penalty on Wells Fargo for inadequate electronic document management. The firm failed to implement a "write once, read many" system designed to prevent records from being altered or deleted after their initial creation.

Gender discrimination within the workforce

Around June 2018, approximately twelve female executives from Wells Fargo's wealth management sector convened in Scottsdale, Arizona to discuss the limited representation of women in leadership positions. This group, referred to as "the meeting of 12," included most regional managing directors, among whom only 12 out of 45 were women. Previous inquiries had already spotlighted issues of gender bias within this division. Female employees reported being overlooked for senior roles in favor of less qualified male colleagues.

Criticism was also directed at Jay Welker, president of Wells Fargo’s wealth management division, for making sexist comments by labeling female staff as "girls" who "should be at home taking care of their children."

Excessive auto insurance sales

On June 10, 2019, Wells Fargo consented to a $385 million settlement resolving allegations that it deceived millions of auto-loan customers into buying unnecessary insurance policies through National General Insurance.

Later, in February 2023, the bank agreed to pay $300 million to settle claims from shareholders concerning disclosures related to auto insurance practices.

Inadequate Oversight of Registered Representatives

On August 28, 2020, Wells Fargo agreed to pay a penalty of $350,000 along with $10 million in restitution after the Financial Industry Regulatory Authority determined that the firm failed to adequately supervise two registered representatives who recommended high-risk energy securities investments during the period from 2014 to 2015.

Directing Clients Toward Higher-Cost Retirement Accounts

In April 2018, the United States Department of Labor launched an investigation into whether Wells Fargo was guiding clients into more expensive retirement plans and retirement funds managed internally by the company, raising questions about potential conflicts of interest and ethical business practices.

Document Tampering

In May 2018, Wells Fargo discovered that its business banking division had improperly modified documents concerning business clients throughout 2017 and early 2018, which negatively affected the firm’s compliance standing and risk management reputation.

Executive Pay Disparity

Wells Fargo’s CEO John Stumpf received compensation that was 473 times greater than the median employee’s earnings, ranking the company 33rd among S&P 500 firms for CEO-to-worker pay ratio. In 2014, an employee earning $15 per hour sent an email to Stumpf—copied to approximately 200,000 coworkers—requesting a $10,000 yearly raise funded by corporate profits to address stagnant wages. The company responded by underscoring its commitment to providing "market competitive" salaries and benefits exceeding federal minimum wage standards.

Pursuant to Section 953(b) of the Dodd-Frank Wall Street Reform and Consumer Protection Act, publicly traded companies are required to disclose both the median employee compensation and the ratio of CEO pay to median employee pay, thereby enhancing transparency around executive remuneration.

Stringent Account Freezing and Closures

Between 2011 and 2016, Wells Fargo employed automated fraud detection systems that resulted in freezing entire consumer deposit accounts, restricting access to funds until accounts were ultimately closed and funds returned. In 2022, the Consumer Financial Protection Bureau ordered Wells Fargo to provide $160 million in restitution to over one million customers harmed by this aggressive account-freezing practice.

In popular culture

Wells Fargo has been depicted in various films and television programs, emphasizing its historical role in transportation and delivery services. Significant portrayals include the 1937 movie Wells Fargo, the television series Tales of Wells Fargo (1957–1962), and references in musical numbers such as "The Deadwood Stage" from the 1953 film Calamity Jane. The company’s iconic stagecoaches also feature in movies like The Music Man (1962) and Back to the Future Part III (1990), reinforcing Wells Fargo’s cultural heritage linked to its historic business endeavors.

Charitable Initiatives

In March 2022, Wells Fargo contributed $1 million to the American Red Cross to aid Ukrainian refugees affected by the conflict with Russia. The following month, the Wells Fargo Foundation committed $210 million to promote racial equity in homeownership. This included $60 million allocated for WORTH grants through 2025 and $150 million dedicated to reducing mortgage interest rates and refinancing expenses for minority homeowners.

In April 2023, Wells Fargo entered into a formal decade-long collaboration with TD Jakes Group, pledging close to $1 billion to create inclusive mixed-income housing and retail developments around Atlanta. This move underscores the bank’s strategic focus on fostering community growth.

By December 2023, Wells Fargo named Darlene Goins as president of the Wells Fargo Foundation and Head of Philanthropy and Community Impact. Goins brings extensive leadership experience from her tenure at FICO and prior Wells Fargo positions centered on financial inclusion, notably spearheading the Banking Inclusion Initiative aimed at expanding affordable banking access.

On September 23, 2024, Wells Fargo initiated a $1.6 billion delayed-draw term loan to support Tempur Sealy International’s acquisition of Mattress Firm Group, highlighting the bank’s continued involvement in financing significant corporate deals.

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