Preview

Quantitative Easing Effects on Wells Fargo

Satisfactory Essays
Open Document
Open Document
1479 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Quantitative Easing Effects on Wells Fargo
Commercial Bank: Wells Fargo
Background:
Wells Fargo is the largest bank in terms of market capitalization and the fourth largest bank in the United States in terms of assets. The present Wells Fargo is a result of a merger between San Francisco-based Wells Fargo & Company and Minneapolis-based Norwest Corporation in 1998. Later on October 3, 2008, Wells Fargo acquired Charlotte-based Wachovia for about $15.1 billion in a stock-for-stock transaction. Its headquarters is currently located in San Francisco, California. Wells Fargo is a diversified financial services company that provides credit cards, consumer banking, corporate banking, investment banking, global wealth management, financial analysis, private equity, insurance and etc.
Wells Fargo and the 2008 Financial Crisis | Before the crisis | During the crisis | After the crisis | Profitability Ratios | 2006 | 2007 | 2008 | 2009 | 2010 | 2011 | ROA% (Net) | 1.76 | 1.52 | 0.28 | 0.96 | 0.99 | 1.23 | ROE % (Net) | 19.6 | 17.23 | 3.61 | 11.64 | 10.38 | 11.90 | Net Interest Margin % | 61.88 | 59.62 | 72.05 | 82.32 | 84.77 | 86.54 | Calculated Tax Rate % | 33.45 | 30.70 | 18.48 | 29.62 | 33.36 | 31.47 | | | | | | | | Debt Management | | | | | | | Total Debt to Equity | 9.51 | 11.08 | 12.22 | 10.13 | 8.95 | 8.37 | Equity Multiplier | 10.51 | 12.08 | 13.22 | 11.13 | 9.95 | 9.37 | | | | | | | | Asset Management | | | | | | | Total Asset Turnover | 0.1 | 0.1 | 0.05 | 0.08 | 0.07 | 0.07 | Property Plant & Equip Turnover | 10.53 | 10.92 | 6.29 | 8.96 | 9.15 | 9.14 | Cash & Equivalents Turnover | 2.91 | 3.36 | 1.28 | 1.58 | 1.42 | 1.57 | | | | | | | | Per Share | | | | | | | Cash Flow per Share | 9.53 | 2.71 | (1.43) | 6.30 | 3.59 | 2.59 | Book Value per Share | 13.58 | 14.45 | 23.43 | 21.59 | 24.02 | 26.65 |

According to the figures in the years 2006 and 2007, we can see that Wells Fargo was in a very good shape
Continue Reading
View Writing Issues

You May Also Find These Documents Helpful

  • Good Essays

    Ldr 531 Week 2
    • 789 Words
    • 4 Pages

    Ldr 531 Week 2

    By the end of second quarter 2008, North Carolina-based Wachovia Corporation had grown to become the 4th largest bank in the United States with assets of $812 billion. Since its establishment in 1979, the company expanded its footprint through many mergers and acquisitions. Some of the large ones in its history were with First Union in 2001, with Alabama-based SouthTrust Corporation in 2004, and with Golden West Financial Corporation in 2006.…

    • 789 Words
    • 4 Pages
    Good Essays
    Read More
  • Satisfactory Essays

    ECO 203 Week 4 DQ 1 Federal Reserve Bank Policy during the 2007-2008 Recession
    • 504 Words
    • 3 Pages

    ECO 203 Week 4 DQ 1 Federal Reserve Bank Policy during the 2007-2008 Recession

    This pack of ECO 203 Week 4 DQ 1 Federal Reserve Bank Policy during the 2007-2008 Recession comprises:…

    • 504 Words
    • 3 Pages
    Satisfactory Essays
    Read More
  • Powerful Essays

    Jp Morgan Chase Hit by $2 Billion Derivatives Loss
    • 3325 Words
    • 14 Pages

    Jp Morgan Chase Hit by $2 Billion Derivatives Loss

    JPMorgan Chase & Co. is the leading financial services firm in the world with operations in over fifty countries. It was founded and based in the United States where its corporate headquarters is located in New York City. It has six core businesses: Investment Banking, Retail Financial Services, Card Services, Commercial Banking, Treasury & Securities Services, and Asset Management (JPMorgan Chase & Co.).…

    • 3325 Words
    • 14 Pages
    Powerful Essays
    Read More
  • Satisfactory Essays

    Business Analysis: Wells Fargo
    • 256 Words
    • 2 Pages

    Business Analysis: Wells Fargo

    Wells Fargo is a diversified community based financial services company with about $1.9 trillion in assets, Wells Fargo was founded in 1852 by Henry Wells and William Fargo, it was a company based on the buying of gold and selling paper bank drafts as good and gold and also the express delivery of gold and anything that has value. Wells Fargo has earned its reputation of trust by delivering rapidly and responsibly with people’s money.…

    • 256 Words
    • 2 Pages
    Satisfactory Essays
    Read More
  • Powerful Essays

    Wells Fargo vs Bank of America
    • 2672 Words
    • 11 Pages

    Wells Fargo vs Bank of America

    Before analyzing and comparing both banks, one needs to know a little about the banks themselves. We already learned a little bit about Wells Fargo from the first paper. Now let’s look at Bank of America Corp. BAC is one of Wells Fargo’s major nationwide competitors. BAC, the nation’s largest bank and financial holding company, has 6,238 offices within the U.S. Bank of America had about 288,000 employees in its annual report for 2010. The CEO at Bank of America is Brian Moynihan.…

    • 2672 Words
    • 11 Pages
    Powerful Essays
    Read More
  • Satisfactory Essays

    The Negative Aspects Of Wells Fargo
    • 83 Words
    • 1 Page

    The Negative Aspects Of Wells Fargo

    We all know that bad things can happen to good people. And so it goes with corporations. Wells Fargo has been such a good company this is very sadden about what had happen. Although it deserves to be castigated for the outrageous actions of its employees, managers and executives, we should resist painting the institution itself with too broad of a brush. As Congress and the media focus national attention on the scandal, we should not lose sight of the company's many…

    • 83 Words
    • 1 Page
    Satisfactory Essays
    Read More
  • Good Essays

    Jones Distribution Case Solution
    • 1980 Words
    • 8 Pages

    Jones Distribution Case Solution

    The Company Jones Electrical Distribution was founded in 1997. The company distributes and wholesales electrical components. It is a sole proprietorship owned by Nelson Jones who is looking for a new banking relationship that will allow him to receive a larger loan to sustain his business.…

    • 1980 Words
    • 8 Pages
    Good Essays
    Read More
  • Powerful Essays

    Mcdonald's Strategic Prospects
    • 734 Words
    • 3 Pages

    Mcdonald's Strategic Prospects

    With more than 31,000 restaurants in 118 countries and serving nearly 60 million consumers daily, McDonald’s (MCD) has grown to be the largest food service merchant worldwide. It is because of this that McDonald’s ranks higher than both Burger King Holdings (BKC) and Yum! Foods Inc. (Yum) in just about every category of the Competitive Profile Matrix (CPM). The 2008 year end numbers show that McDonald’s revenue of $22.99 billion doubled that of Yum and more surprisingly almost ten times the revenue of Burger King. Yum ended the year with a net income of $928 million, which sounds like a good year until you see that MCD’s year netted $4.35 billion (David, 2011).…

    • 734 Words
    • 3 Pages
    Powerful Essays
    Read More
  • Powerful Essays

    Risk Analysis for Wells Fargo
    • 4546 Words
    • 19 Pages

    Risk Analysis for Wells Fargo

    Wells Fargo Bank, National Association, headquarter at Sioux Falls, South Dakota, has 6332 domestic locations in 41 states, 0 locations in territories, and 37 foreign locations. Its FDIC Certificate number is 3511. It has been insured by FDIC at Jan. 1, 1934, and established at Jan. 1, 1870. Wells Fargo is belonging to the class of National Bank. Wells Fargo is a financial holding company and a bank holding company. Through its subsidiaries, it operates in three segments: Community Banking, which provides a line of financial products and services including investment, insurance and trust services for consumers and businesses; Wholesale Banking, which provides commercial loans and lines of credit, letters of credit, asset-based lending, equipment leasing, international trade facilities, and trade financing; and Wealth, Brokerage and Retirement, which provides financial planning, private banking, credit, investment management and trust. At Dec 31 2012, Wells Fargo had total assets of $1.42 trillion and total deposits of $1.00 trillion.…

    • 4546 Words
    • 19 Pages
    Powerful Essays
    Read More
  • Satisfactory Essays

    Analysis Of Wells Fargo
    • 83 Words
    • 1 Page

    Analysis Of Wells Fargo

    Wells Fargo announced it has donated $450,000 to four nonprofits in support of people with disabilities to be successful financially. The four recipients were National Disability Institute, National Federation of the Blind, Disability Rights Education & Defense Fund, and Association of People Supporting Employment First. These grants add to the $25 million Wells Fargo donated from 2013. Wells Fargo’s Kathy Martinez stated that Wells Fargo’s efforts are to improve accessibility to everyone and help promote programs and empower people with disabilities (Business Wire,12.17.15).…

    • 83 Words
    • 1 Page
    Satisfactory Essays
    Read More
  • Good Essays

    Monetary Policy in the United States
    • 747 Words
    • 3 Pages

    Monetary Policy in the United States

    Identify at least three problems facing the FED in achieving its goals of monetary policy and give your recommendations on how to deal with each of the problems you list.…

    • 747 Words
    • 3 Pages
    Good Essays
    Read More
  • Good Essays

    U.S. Monetary Policy and What the Federal Reserve
    • 464 Words
    • 2 Pages

    U.S. Monetary Policy and What the Federal Reserve

    According to the Congressional Budget Office monetary policy is, "The strategy of influencing movements of the money supply and interest rates to affect output and inflation. An "easy" monetary policy suggests faster growth of the money supply and initially lower short-term interest rates in an attempt to increase aggregate demand, but it may lead to a higher rate of inflation. A "tight" monetary policy suggests slower growth of the money supply and higher interest rates in the near term in an attempt to reduce inflationary pressure by lowering aggregate demand." In the United States it is the Federal Reserve System that is responsible for defining and implementing these policies. In the United States the Federal Reserve is made up of a Board of Governors, which consists of seven members, all of whom are appointed by the president and confirmed by the Senate. Of these seven, the president appoints one to be chairman of the Board of Governors. The current chairman of the United States Federal Reserve is Alan Greenspan.…

    • 464 Words
    • 2 Pages
    Good Essays
    Read More
  • Good Essays

    Yeast Population Growth
    • 569 Words
    • 3 Pages

    Yeast Population Growth

    | since the transmission and absorbance is being measured at a specific wave length, so if we change it the results will also change…

    • 569 Words
    • 3 Pages
    Good Essays
    Read More
  • Good Essays

    Monetary Policy Stimulus
    • 250 Words
    • 1 Page

    Monetary Policy Stimulus

    1. Suppose that you have been hired as a consultant to advise the Federal Reserve Bank on Monetary Policy. They seek to eliminate our persisting unemployment situation. Devise a package of steps involved with your monetary policy stimulus plan, and convince Fed Chairman Bernanke to use your approach?…

    • 250 Words
    • 1 Page
    Good Essays
    Read More
  • Good Essays

    Role of the Federal Reserve System in Designing and Implementing US Monetary Policies
    • 531 Words
    • 3 Pages

    Role of the Federal Reserve System in Designing and Implementing US Monetary Policies

    This week’s reading material proved to be very informative as well as eye opening. There was a lot of information covered concerning the Federal Reserve System that we all found to be very interesting. According to (Colander, 2010), “Money is a highly liquid financial asset that serves as a unit of account, a medium of exchange, and a store of wealth,” before this class we never really looked at money in this manner. We all know that money can be used in many ways for many things, but before this class we never really stop to ponder the role of the Federal Reserve System and the part it plays in implementing U.S. monetary policies.…

    • 531 Words
    • 3 Pages
    Good Essays
    Read More

Related Topics