Merge of large American banks
In October of last year wrote that the American bank Wells Fargo and Co. Plans “ unfriendly “ (that is made without the partner consent) bank First Interstate Bancorp absorption. And here yesterday Wells Fargo and Co. Declared the transaction on $11,6 mlrd is bank operation largest in the history in the USA.
the Statement for merge has been made after multimonthly skirmishes between two banks. Hearings about possible absorption went for a long time. First Interstate tried to find rescue. So, management First Interstate Bancorp has hastily started searches of the strategic partner. Among possible candidates was called First Bank System Inc. However all these attempts have appeared vain, and one of these days Wells Fargo and Co. Declared the transaction on $11,6 mlrd - the largest transaction for all bank history of the USA.
merge to the Californian competitor will bring Wells Fargo and Co. $800 million at the expense of reduction ezhegodnih expenses, but will affect quantity of workplaces. At a rough guess, merge will lead to reduction approximately 5 thousand workplaces from 5700 existing now in the Californian branch First Interstate. According to chairman Wells Fargo Pola Hejzena, “ this decision is defined by the concept according to which it is not meaningful to have two branches, located in one region. Workplaces are an important problem, and we are not going to embellish a situation, however the final decision till now is not taken out “. The floor of Hejzen has informed also that the bank will expand “ nonconventional kinds of activity “ in particular will create a network of small points in supermarkets. “ by the end of 1996 we expect to create more than 1,1 thousand Points on places, - has declared Pol Hejzen. - As a result the bank hopes closely to come nearer to clients “.
Wells Fargo and Co. On the beginning of last year was 16 - m bank of the USA on size of own capital ($3,6 mlrd). The sum of actives of bank made for this date $53,4 billion Staff - its apartment is located in the Dignity - Frantsisko (California).
First Interstate Bancorp - 20 - j bank of the USA on size of own capital ($2,9 mlrd). The sum of actives - $55,8 billion Staff - apartment is located in Los - Andzhelese (California).
As a result of association Wells Fargo and Co. And First Interstate Bancorp the eighth is formed on size bank of the USA with the actives making $108 billion New bank will keep name Wells Fargo.
DEPARTMENT of the FINANCE