Wells Fargo - Research Paper Example

Wells Fargo Wells Fargo & Company is a diversified financial services company providing banking, insurance, investments, mortgage and consumer finance to customers. As of 2011, it has $1.2 trillion in assets (wellsfargo.com, par.2). Their stock market value exceeds $130 billion, making them one of the world’s 35 top companies. An internal analysis of the company shows that it has several strengths. Foremost among these is its wide distribution network. It has more than 9,000 stores and 12,000 ATMs, the Internet and other distribution channels across North America and internationally.

Although it is headquartered in San Francisco, it is decentralized in every local Wells Fargo store. It is one of the world’s 40 largest employers and America’s 12th-largest private employer, with 280,000 team members (wellsfargo.com, par.1). Another strength of Wells Fargo is that it is very effective at cross-selling, which is the selling of banks products/services to an already existing customer. This is their clear cost advantage and value advantage to their customers, as compared to other financial institutions which offer limited financial products.

Customers keep on coming back to them because of their service. Wells Fargo also boasts of diversified earnings distribution across segments. A major weakness of Wells Fargo is that it does not have the diversified, global footprint of the other big banks such as Bank of America and the Citigroup. They have a limited international presence. It also has a weak asset quality amidst high real estate exposure. Some consumers also view Wells Fargo as an overly conservative bank in terms of lending.

The Federal bank regulators look at Wells Fargo as having "significant weaknesses in its system of internal controls" and "lacks an adequate assessment of the compliance risks throughout the bank" in carrying out federal laws designed to stops terrorists and criminals from using the U.S. financial system to fund their operations (Strasburg, par.3) . Work Cited Strasburg, Jenny. “Regulators reprimand Wells Fargo / Banking officials cite lax enforcement of measures to prevent money laundering.

” SFGate.com. 5 July 2005. Web. 5 June 2011. http://articles.sfgate.com/2005-07- 07/business/17383978_1_banking-giant-wells-fargo-bank-secrecy-act-largest- bank Wells Fargo Today. 1st Quarter 2011. Web. 5 June 2011. https://www.wellsfargo.com/downloads/pdf/about/wellsfargotoday.pdf