A Study on Wells Fargo

As we all know, China has the big four banks: ICBC, CBC, ABC, BOC. Today I learned, the, big four banks of united states. They are jp morgan chase, Wells fargo, bank of america and city bank. Now let's talk about wells fargo.

Headquartered in san francisco, Wells Fargo was established in 1852, 132 years older than ICBC, and listed in NYSE. It has a wide range of banking and financial service products, ranging from asset management to corporate finance, retail banking, commercial banking, commodities, investment banking, brokerage, insurance and so on.

At the end of 2015, Wells Fargo ranked 2ed  by market capitalization worldwide, and 3ed by asset.

Let's turn to its latest annual report. By 2016, Well Fargo's revenue reached $88.26 billion, approximately $10 billion less than ICBC at the same time. It's profit reached $21.93 billion, while ICBC made $42 billion. The total asset of Wells Fargo, was $1.93 trillion, and the number of ICBC was $3.6 trillion. By the end of the year.2015, Wells fargo had 8700 branches operating in 35 countries while ICBC had more than 20000 branches in 37 countries. Wells Fargo hired 268800 employees, the number of ICBC was 461000.

Wells fargo grew into such a big global bank through merger and acquisition, but that has come to an end. In September 2016, a big scandal exploded its fame. 2 million Wells Fargo's customers accused this bank of opening false accounts for them without their permission. The first customer financial protection bureau gave Wells Fargo a fine of $185 million. As a consequence, the share price of Wells Fargo dropped dramatically and it was thus surpassed by JPMC by market capitalization. Warren buffet, the largest individual shareholder of Wells Fargo, holding ten percent of total share, suffered a heavy financial loss.

On february second,2018, The federal reserve of the united states barred Wells Fargo from expanding until it can prove its capability of risk control.

All the banks across the world learned a big lesson from the misbehave of Wells Fargo.