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Megabank Mergers: J. P. Morgan Chase-Bank

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Megabank mergers have been a part of banking for the past 20 years. Most of all the well known banks we see on a daily basis like Wells Fargo, Chase, and Bank of America are all results of mergers, maybe even multiple mergers at some point in time. As far as megabanks go though I will start with J.P. Morgan Chase-Bank, they were announced around early 2004 and at this time they ranked second place for the largest bank in United States of America. J.P. Morgan Chase-Bank was estimating roughly 1.1 trillion dollars’ worth in assets, and the merger was only about 59 million dollars; the extreme amount of assets completely outweighs the high costs of such a large merger. This was all possible to become such a success because Bank One had an outstanding …show more content…

This merger happened shortly after Citigroup had an agreement to buy Wachovia for $1 a share and also to take over most losses on their loan portfolio, after Wells Fargo jumped in they pulled out of the previously discussed agreement with Citigroup. Wells Fargo had a well known reputation of being a very strong company in many ways and told Wachovia that their proposition had no need for the FDIC, which naturally was very attractive and also $20 billion will be raised by selling new shares of stock. Something that greatly attracted Wells Fargo to invest in this deal is they will be gaining the large retail type banking they’ve been searching for which Wachovia was perfect for. Not only did Wells Fargo have a great reputation but, Wachovia has a strong team in their retail banking management group which made these two a great fit. These two seemed like a perfect match for one another, they also had agreed that three of the directors from Wachovia would join Wells Fargo’s board. Wachovia’s share’s had reached a low of $2, then back to $3.91, and then finally closed with a price of $6.53 before the deal took place. They also had billions of their money in the loan portfolio tied up in troubled mortgages that accumulated from their merger with Golden West Financial. A campaign was initiated to raise enough capital that would allow Wells Fargo

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Wells Fargo has taken extra time to invest in training to give skill-sets needed to push sales, and leadership workshops. I believe this is an excellent route to take, considering more companies are pouring more funding into these types of avenues to not only increase the productivity of its company, but to ensure things like this can be prevented in the future. I also think that Wells Fargo should go deeper than they already have, and work to establish a healthy company culture, such as with Google and Facebook, where everyone feels as if they have an input. With good company culture brings a good set of morals and ethics that can go further than just within the small confounds of Wells Fargo, but can also transfer into their own daily lives, which is great to

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Wells Fargo has been in business for over 160 years and was founded on March 18, 1852, by Henry Wells and William Fargo. The company opened its first office, in San Francisco, on July 1852. Wells Fargo served the West with banking needs, which included gold and paper bank drafts, and offered quick delivery of gold or other valuables. In1855, the first of many financial dilemmas took place when a drought made it impossible to mine for gold, and this caused almost 200 businesses in San Francisco to fail, but Wells Fargo didn’t fail, they prospered. In the early1860s, Wells Fargo acquired almost all the stage lines from the Missouri River to California, giving them a monopoly on transcontinental delivery services.

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Wells Fargo is an American based company in the international banking and financial services industry. Henry Wells and William Fargo founded Wells Fargo in 1852 (History of Wells Fargo, n.d.). Wells Fargo has its headquarters in San Francisco, California but still has other sub headquarters all around the United States. Over time, Wells Fargo became one of the largest banks in the United States. Following a couple years of great success, the bank found itself entrenched in one of the biggest bank scandals in history.

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According to Fortune, “Executives sought to drive growth by putting undue pressure on its employees to hit sales quotas, and many employees responded by fraudulently opening customer accounts. In most cases these accounts were closed before customers noticed, but in other cases consumers were hit with associated fees or took hits to their credit ratings. The bank was forced to return $2.6 million in ill-gotten fees and pay $186 million in fines to the government. But the biggest hit Wells Fargo will take is to its reputation, as the media and government officials spent much of the year slamming the bank for its fraud,” (Mathews). The victims being the unknowing customers who saw their credit ratings plummet and faced steep financial fees, that were brought about through no fault of their own.

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Also they had lots of other big competitions which they had to focus on. They need to get consumers in order to have a proper company. Wells Fargo competition between other banks helps get them more consumers toward their banks. Also buying Wachovia National Banks helps impact their bank because they expanded. It also helped spread banks across the U.S. which helped make them a major bank in America.

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The Wells Fargo scandal began in 2004. Since then millions of accounts were created, yet nothing was noticed. Also, the workers felt pressured to create fake accounts in order to meet their goals that were unrealistic. Wells Fargo has faced several law suits and I believe they will continue to do so. The scandal costed people their hard-earned money and they have a right to file a law suit.

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The employees also opened credit cards for customers and those actions lead customers to have financial difficulty as they have gone to debt collectors and have had issued with their credit reports showing inaccurate information. The consequences of the employee’s actions caused many to lose their jobs as well as resulting in hefty fines for Wells Fargo Co. Customers were outraged and understandably felt that their assets were not safe with the firm. The Wall Street Journal explains, “The top executive of Wells Fargo & Co. is expected to tell a

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They had hundreds of offices in the West and were the biggest Stagecoach business (Senzell). Wells Fargo became the greatest mail delivery company and paved the way for delivery services across the

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Introduction One thing that has aroused my curiosity when I saw the logo of Wells Fargo, it is the western movies image that many non-Americans associated with the U.S.A. this logo (stagecoach) for a bank is unusual and as ex-bank employee, I try to learn more in order to compare. What I learned arouse my wish to work upon my graduation and why not you? Its welcome, I quote “Regardless of our growing size, scope, and reach, we must never lose sight of putting our customers first and helping them succeed financially.” (Wells Fargo & Company) summarize my interest for this company. For a financial entity of this size, you must know the history of Wells Fargo, you must know values and culture of Wells Fargo, and you must know the strategy and goals of Wells Fargo.

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As all this came to fruition, the bank was penalized with $185 million dollars in fines and other penalties by county and federal organizations (Blake, 2016). On top of getting slapped with millions of dollars worth of fines, Wells Fargo fired 5,300 employees that may have been involved in the scandal (Blake, 2016). Some of Wells Fargo’s top executives where asked to step down in court proceedings as well as in other meetings with federal agencies. There have also been several lawsuits filed against Wells Fargo by customers and former employees of the company that feel that they were wronged and bombarded with threats. Thankfully, this scandal did not affect most of Wells Fargo’s clients.

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Bringing multiple organizations together under one united system is occurring more frequently, but is not a simple task. Target has decided to undergo a merger by acquiring a major competitor. A merger is not an unpretentious task. This decision will come with many possible issue which is why the company is seeking my expertise as an external consultant. Merging two organizations will have an impact on the organizational structure, culture and compensation system.

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early stages of the scandal, the San Francisco based financial institution was investigated by the local Los Angeles City’s Attorney and California state officials. Preliminary investigations revealed the extent of the fraud and malpractice predated as far back as 2011. As a result, on September 8, 2016, federal investigators followed suit and the Consumer Financial Protection Bureau Agency opened an investigation against Wells Fargo and handed a $185 million penalty to settle the dispute. This settlement would become the largest fine levied in the agency’s history. Of the $185 million, $100 million comprised of fines from the Consumer Financial Protection Bureau (CFPB), $50 million originated from the Los Angeles City Attorney’s Office, and

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Organizational Strategy and Objectives The foundation of Wells Fargo’s strategy is its focus on customers. The company’s strategy tends to drive the choices they make and also enable them to prioritize its efforts, differential from peers, and build a lasting value for customers, employees, communities, and shareholders. The diversified business model tends to provide the company with the stability and the strength as it assures communities and customers that it exists to serve them and also the future generations. The objectives of the company are to be the leader in financial services in areas of team member engagement, customer services and advice, shareholder value, innovation, corporate citizenship, and risk management (Wells Fargo n.d).

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Wells Fargo’s “Gutless Leadership” Wells Fargo is one of the largest banks in the United States, with “…more than 8,600 locations [and] 13,000 ATMs” (Wells Fargo Today). Millions of Americans trust them with their finances. However, after a federal investigation, Wells Fargo has admitted to opening up to two million accounts without customers’ permission. While this had financial implications for many customers, this scandal most heavily affected Wells Fargo’s low-level employees.

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