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Wells Fargo to combine with Wachovia

Wells Fargo to combine with Wachovia

Wells Fargo is expanding with a $12.2 billion acquisition of Wachovia Corp.

By limiting loans and selling additional products, Wells Fargo has avoided financial dictator that has struck Countrywide Financial, Washington Mutual, Wachovia and many others.

“Wells Fargo knows how to gather deposits, sell additional products and not make loans to people who can’t afford to pay them back,? said Celent analyst Bart Narter.

Wells Fargo has however experienced its fair share of downfalls. A $1.4 billion loss was taken on ill-advised home equity loans and gambled with catering consumers with shabby credit reports.

Once the Wachovia and Wells Fargo deal is complete, Wells Fargo will merge with Bank of America Corp. and JPMorgan Chase & Co. as the U.S. banks with the country’s largest networking branch “and in man y ways, Wells Fargo may be the strongest of them all,? said analyst Frederick Cannon of Keefe, Bruyette & Woods Inc. –St. Paul Pioneer Press.

After the merge Wells Fargo will have $1.42 trillion in assets, still trailing that of Bank of America, Citigroup, and JPMorgan.

However, size does not necessarily equate to financial strength.

Sources: St. Paul Pioneer Press “Wells Fargo points wagons east with Wachovia deal? by Michael Liedtke