Wells Fargo & Company

American multinational financial services company providing banking, investment, mortgage, and consumer and commercial finance services, one of the largest banks in the United States.

Wells Fargo was founded on March 18, 1852, by Henry Wells and William G. Fargo in New York City. Both founders had previously co-founded American Express in 1850. Wells Fargo was established to provide banking and express delivery services to California, which was experiencing a gold rush that had dramatically increased economic activity and the need for financial services on the West Coast.

The company established banking offices and express routes throughout California and the American West, becoming synonymous with the frontier economy. Wells Fargo's stagecoach service, which transported gold, currency, and mail across the West, became one of the most iconic symbols of the American frontier era.

In the late 19th and early 20th centuries, Wells Fargo expanded its banking operations as the express business declined. The company merged with Nevada National Bank in 1905 and continued to grow its California banking presence. Wells Fargo became one of the leading banks in the western United States through the mid-20th century.

The modern Wells Fargo was largely shaped by a series of major acquisitions. In 1996, Wells Fargo acquired First Interstate Bancorp for approximately $11.6 billion, significantly expanding its branch network. In 1998, Norwest Corporation, a Minneapolis-based bank holding company, acquired Wells Fargo and adopted the Wells Fargo name, moving the combined company's headquarters to San Francisco. Norwest's CEO, Dick Kovacevich, became CEO of the combined company.

The most transformative acquisition came in 2008, when Wells Fargo acquired Wachovia Corporation for approximately $15.1 billion during the financial crisis. Wachovia was one of the largest banks in the United States and had been severely weakened by losses on mortgage-related securities. The acquisition made Wells Fargo one of the largest banks in the country by deposits and branches, with a truly national retail banking presence for the first time.

Wells Fargo emerged from the 2008 financial crisis in relatively strong condition compared to peers, having avoided some of the worst excesses of the subprime mortgage market. The company received $25 billion in TARP funds from the U.S. government in October 2008 and repaid them in December 2009.

In September 2016, Wells Fargo was fined $185 million by the Consumer Financial Protection Bureau (CFPB), the Office of the Comptroller of the Currency (OCC), and the City and County of Los Angeles for creating approximately 2 million unauthorized bank and credit card accounts in customers' names without their knowledge or consent. The scandal, which became known as the "fake accounts" scandal, resulted in the resignation of CEO John Stumpf and caused severe reputational damage to the company.

The fallout from the fake accounts scandal continued for years. In February 2018, the Federal Reserve imposed an unprecedented asset cap on Wells Fargo, limiting the company's total assets to approximately $1.95 trillion until the Fed was satisfied that the company had sufficiently improved its risk management and governance. In 2020, Wells Fargo agreed to pay $3 billion to the U.S. Department of Justice and the SEC to resolve criminal and civil investigations related to the fake accounts scandal.

Charlie Scharf became CEO in October 2019, succeeding Tim Sloan. Scharf, who had previously served as CEO of Visa and Bank of New York Mellon, has focused on improving Wells Fargo's risk management and control infrastructure, reducing costs, and investing in the company's digital capabilities.

In FY2024, Wells Fargo reported net income of approximately $19.7 billion and continued to make progress on satisfying the Federal Reserve's requirements for lifting the asset cap.

Wells Fargo's sustainability strategy centers on leveraging its scale and expertise to support sustainability and resilience for its operations, clients, and communities. The company takes a client-centric approach to sustainability, preparing to meet evolving sustainability-related needs while pursuing commercial opportunities in sustainable finance.

Sustainable finance initiatives focus on providing financing and expertise to help clients pursue their own sustainability objectives and make their businesses more resilient. Wells Fargo works with customers ranging from households to large businesses, offering financial tools and insights to support sustainability goals. The company has made strategic decisions regarding its climate approach, including adjusting its financed emissions targets while maintaining focus on operational sustainability.

Operational sustainability encompasses Wells Fargo's efforts to strengthen its own environmental performance across offices and branches. The company installs energy and water efficiency measures, innovative building technologies, and procures renewable electricity to power facilities. These investments help lower long-term operating costs, improve employee and customer experience, and support the company's operational sustainability goals.

Climate action includes Wells Fargo's commitment to achieving net-zero emissions across its own operations by 2050, while maintaining operational sustainability targets for 2030. The company has made strategic adjustments to its climate approach, focusing on what banks do best - providing financing and expertise to help clients pursue their own objectives rather than setting specific financed emissions targets.

Environmental stewardship programs focus on energy efficiency, renewable energy procurement, and sustainable building practices across Wells Fargo's facilities. The company implements comprehensive sustainability governance practices, risk management frameworks, and stakeholder engagement processes to adapt to a rapidly changing world while maintaining strong risk and control culture.

The company's ethical framework encompasses responsible banking practices, customer protection, and corporate governance. Wells Fargo maintains comprehensive compliance programs, ethical guidelines, and risk management systems while focusing on rebuilding trust after past regulatory challenges. The company implements responsible business practices across its global operations and supply chain.

Social responsibility programs include community engagement initiatives, philanthropic support through the Wells Fargo Foundation, and employee volunteer programs. Wells Fargo supports affordable housing, small business development, financial education, and community development initiatives while engaging in partnerships with nonprofit organizations and community stakeholders.

Wells Fargo has received recognition for banking excellence, transformation leadership, and community engagement:

• IFR Bank of the Year (2025): Recognition for methodical transformation and emergence as a leaner, more disciplined and efficient competitor after seven years of regulatory challenges, highlighting the unleashing of corporate and investment banking capabilities
• Diversity & Inclusion Champions Recognition Program: Established program recognizing team members for advancing diversity and inclusion agenda, growing to recognize six individuals and six groups annually for 11 years
• Banking Industry Awards: Multiple awards for digital banking innovation, customer service excellence, and financial technology advancement
• Community Engagement Recognition: Awards for philanthropic programs, affordable housing initiatives, and small business development support
• Employee Recognition Programs: Comprehensive internal recognition programs celebrating employee achievements, service excellence, and workplace contributions
• Sustainability Leadership: Recognition for operational sustainability initiatives, renewable energy procurement, and environmental stewardship programs
• Corporate Governance Awards: Recognition for improved risk management practices, compliance programs, and governance reforms
• Financial Technology Awards: Recognition for digital banking platforms, mobile banking innovations, and fintech partnerships
• Workplace Excellence Awards: Recognition for employee development programs, workplace culture improvements, and talent management initiatives

Wells Fargo's most significant controversy is the fake accounts scandal, in which employees created approximately 2 million unauthorized bank and credit card accounts in customers' names without their knowledge. The scandal resulted in a $185 million fine in 2016, the resignation of CEO John Stumpf, a $3 billion DOJ/SEC settlement in 2020, and the Federal Reserve imposing an asset cap that limits Wells Fargo's total assets to approximately $1.95 trillion.

The asset cap, which has been in place for more than six years, constrains Wells Fargo's ability to grow its balance sheet. The Federal Reserve has indicated that the cap will remain until the company has sufficiently improved its risk management and governance.

Wells Fargo has also faced regulatory actions related to its mortgage servicing practices, auto insurance practices, and other consumer protection issues. The company has paid billions of dollars in fines and settlements related to these matters.