Thursday, March 8, 2012

Wells Fargo May Close Branches Says CFO


                          In this tale, a story of downsizing.


In order to become more profitable, Wells Fargo is considering closing branches that are near each other, according to CFO Tim Sloan. CEO John Stumpf claims the company will cut costs by $1.5 billion over the next nine months. Transfer Smart activity has gone up over the same time period.

By contrast, Chase Bank is expanding. In a statement released last month, they outlined a plan for opening 900 new branches in 2012. The majority of their new businesses will be built in Florida, California and Georgia. In 2011, Chase opened 240 branches. Wells Fargo closed 638 branches in 2010.

Wells Fargo is the national leader in home lending and mortgage servicing, overtaking Bank of America. Bank of America was shelled last year as the Fed determined they had given out many faulty loans.

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