Wells Fargo Cuts 3,800 Jobs, Closes Consumer-Finance Business

[MNeagle]

July 7 (Bloomberg) -- Wells Fargo & Co., the fourth-largest U.S. bank by assets, said it will eliminate 3,800 jobs and close its consumer-finance unit.

The lender will take a charge of $185 million, with $137 million, or 2 cents a share, taken in the second quarter, the San Francisco-based company said today in a statement. The unit will close 638 independent consumer-finance branches and stop making non-prime home loans, the statement said.

“The economics of a separate Wells Fargo Financial channel are no longer viable, especially now that our customers have access to the largest banking and mortgage store network in the United States,” David Kvamme, president of Wells Fargo Financial, said in the statement.

Wells Fargo is the top mortgage lender in the U.S. and the fourth-largest bank after purchasing Wachovia Corp. for $12.7 billion in 2008. Auto, home and credit-card loans will continue to be made from retail branches. Less than 2 percent of the bank’s real estate loans were originated in the Wells Fargo Financial network, according to the statement.

Wells Fargo Financial is the division that sold consumer loans and mortgages, including subprime at one time and home equity loans, to borrowers with blemished credit.

http://noir.bloomberg.com/apps/news?pid=newsarchive&sid=aXoTz8psMJLY

[Gaillo]

I was at my local Wells Fargo branch last week. The teller asked me after I withdrew all but FRN $0.84 from my checking if I wanted overdraft protection. I told her that I had never gone into overdraft in the 15 years I've had the account. This was met with a dubious look, as she punched my account info up, then she looked at me in surprise when she found out I was telling her the truth. She then asked me if I'd like to open a savings account. She told me how "stable" Wells Fargo was, and how while other banks were cutting back employees and closing branches, Wells Fargo was "solid" and expanding. I told her that my "savings account" consisted entirely of physical gold and silver, and she proceeded to look at me like I was from another planet!

I'm guessing that SHE won't be the one having the last laugh when this thing is done running its course...

[zap]

( Qoute from Gallio)

I told her that my "savings account" consisted entirely of physical gold and silver, and she proceeded to look at me like I was from another planet!


Don't tell anybody !! ;)

[joe_momma]

Been with Wells 19 years (First Interstate really)

I dread going into the branch now - every teller is hyping the crap out of their


on-line bill pay (nominal monthly fee of $5.00 - I mail 6 bills a month)
debit card service protection (always pay with my cash back Amex card- no monthly balance)
new Visa card (I've a cash back MasterCard in reserve if needed)
re-finance my mortgage
payday advance loan (I've two month's salary in cash in the safe at home).




Without the sh*tty home loans scam, it looks like Banks only make money on fees - they're desperate to milk every penny from the consumer.

[MNeagle]

I was at my local Wells Fargo branch last week. The teller asked me after I withdrew all but FRN $0.84 from my checking if I wanted overdraft protection.

Any significance to .84 balance?? ???