Magazine article Personnel Journal

Wells Fargo's Buyout of First Interstate May Result in Massive Layoffs

Magazine article Personnel Journal

Wells Fargo's Buyout of First Interstate May Result in Massive Layoffs

Article excerpt

WELLS FARGO & CO. ANNOUNCED JANUARY 24 THAT IT HAS reached a definitive agreement to buy First Interstate Bancorp and merge the two entities. The new company will be known as Wells Fargo Bank.

Wells Fargo, based in San Francisco, is the 17th largest bank holding company in the United States. First Interstate Bancorp, based in Los Angeles, is the 15th largest bank holding company in the nation and has a total of 1,140 offices in 13 western states. The merger is the biggest in U.S. banking history and will create the nation's eighth largest bank with $108 billion in assets.

"Customers of both banks in California and the 12 other western states will see great benefits as we combine the strengths of Wells Fargo's and First Interstate's franchises," said Paul Hazen, Wells Fargo's current CEO in a wire report. Hazen will become chairman and CEO of the new entity.

Wells Fargo currently employs 19,700 people. Although the general media has reported the merger will result in the loss of more than 7,000 jobs, Chris Conway, a Wells Fargo spokesperson says: "It's too soon to tell. …

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