Wells Fargo

Case 11, Wells Fargo Corporation:

1. How should Wells Fargo Position itself for the future? The case study reveals that the company’s credit rating in 2009 was weakened by the last merger; according to Jo et al. (2010), the company lost 2.4 billion dollars in the last quarter of 2008. Although the company has expected a decline in share prices, they could not predict that the house prices would fall further. Therefore, the recommendations of the study would include re-branding the Wachovia Bank, sell bad debt and move towards international business investment banking. As the personal finance market has not stabilized, and there is a large competition in the 40 states the company is present, there is a need for specialization; providing merger advice, business financial and investment services, as well as creating joint ventures for trading internationally. This move would help the Wells Fargo Bank to increase its reputation, provide healthier balance sheets and regain its market position, while expanding internationally (Zhou, (2011).

2. Should it strengthen its retail presence, grow internationally, or move into the void created by the disappearance of investment banks?

n order to strengthen its market position, the Wells Fargo Bank needs to re-position its different services and create an image that would attract both high profile private and business investors, looking for financial services. The consolidation of mortgage debt would be the most challenging task during the year; however, with securing more investments, issuing further securities during the year, the goals set in the projected balance sheet could be achieved. International expansion with reduced number of offices, but safe online services, such as offshore and international banking or investment portfolio management can be achieved at a considerably low investment budget (Zhou, et al., 2011).

3. Develop Projected Financial Statements that fully assess and evaluate the impact of the proposed...