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Wells Fargo CEO John Stumpf will not fire Wachovia staff

By Amarendra Bhushan for CEOWORLD Magazine Updated:October 16, 2008

Wells Fargo & Company reported diluted earnings per common share of $0.49 in third quarter 2008 compared with $0.53 in second quarter 2008 and $0.64 in third quarter 2007. Net income was $1.64 billion compared with $1.75 billion in second quarter 2008 and $2.17 billion in third quarter 2007.

“Despite the dramatic changes in our industry and economy, the Wells Fargo team rose to the challenge this quarter and achieved solid growth in loans and deposits, a truly remarkable accomplishment,” said President and CEO John Stumpf. “Revenue year to date was up 11 percent continuing our track record of strong, double-digit growth. Our strength, security and outstanding financial performance continued to compare favorably with our industry peers. Our vision and values and our diversified business model are time-tested over more than two decades. We’re focused, as always, on building lifelong relationships with our customers and communities, and because of that we continue to grow market share and wallet share. Barron’s ranks us one of the world’s 20 most admired companies.

“We’re known and admired for our conservative financial position, and a disciplined acquisition strategy that will not change. In that regard, we look forward with great anticipation and confidence to completing our merger with Wachovia Corporation by year end. The union of our two companies will provide compelling value for all our stakeholders, including Wachovia’s team members, combining the industry’s best in service and best in sales, an unbeatable combination that will create the nation’s premier coast-to-coast financial services company.”

Wells Fargo & Co., whose purchase of Wachovia Corp. will create the nation’s biggest bank-branch network, doesn’t yet know how many jobs will be eliminated as part of the combination, CEO John Stumpf said today.

“My goal is to keep all of you with the company, As we move forward, my job will be to help all of you stay with the company, Wells Fargo plans to complete the deal, which still needs the approval of Wachovia shareholders, in December,.. There have been no decisions about anything. We just are so early into this announcement,..We will take our time on all these businesses. Some businesses are new to us. Some businesses are new to Wachovia..”John Stumpf told employees who packed the Wachovia Atrium in Charlotte.

Wells Fargo, based in San Francisco, has said it plans to trim $5 billion in expenses after beating out Citigroup Inc. to acquire the Charlotte-based bank. Wachovia has about 110,000 workers, including about 20,000 in Charlotte, where it is the largest private employer.

Wachovia CEO Robert Steel said he won’t have an operating role at the combined company after the purchase is completed as early as December.

The bank has 1,600 workers in the Birmingham area, but cuts here are expected to be minimal. Wachovia CEO Bob Steel, who took over the beleaguered Charlotte-based bank in July, said he will no longer have an operating role in the company following the deal. Steel said he is now focused on ensuring that the integration runs smoothly and Wachovia continues to do well.

John G. Stumpf

President and Chief Executive Officer
Wells Fargo & Company

John Stumpf was named Chief Executive Officer in June 2007, elected to Wells Fargo’s Board of Directors in June 2006, and has been President since August 2005.

A 26-year veteran of the company, he joined the former Norwest Corporation (predecessor of Wells Fargo) in 1982 in the loan administration department and then became senior vice president and chief credit officer for Norwest Bank, N.A., Minneapolis. He held a number of management positions at Norwest Bank Minneapolis and Norwest Bank Minnesota before assuming responsibility for Norwest Bank Arizona in 1989. He was named regional president for Norwest Banks in Colorado/Arizona in 1991. From 1994 to 1998, he was regional president for Norwest Bank Texas. During his four years in that position, he led Norwest’s acquisition of 30 Texas banks with total assets of more than $13 billion.

In 1998, with the merger of Norwest Corporation and Wells Fargo & Company, he became head of the Southwestern Banking Group (Arizona, New Mexico and Texas). Two years later he became head of the new Western Banking Group (Arizona, Colorado, Idaho, Nevada, New Mexico, Oregon, Texas, Utah, Washington and Wyoming). In 2000, he led the integration of Wells Fargo’s acquisition of the $23 billion First Security Corporation, based in Salt Lake City. In May 2002, he was named Group EVP of Community Banking.

He serves on the Board of Directors for The Clearing House, the Bay Area chapter of Junior Achievement, the San Francisco Committee on JOBS, the Financial Services Roundtable and The Carlson School of Management at the University of Minnesota. He also serves on the Board of Trustees of the San Francisco Museum of Modern Art and is a member of the California Business Roundtable.

A Minnesota native, he earned his bachelor’s degree in finance from St. Cloud State University, St. Cloud, Minnesota and his MBA with an emphasis in finance from the University of Minnesota.

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