Wells Fargo said that as part of its
restructuring plans, it will close 638 stores, consolidate its
consumer-finance division and shut its subprime lending unit as it
continues to digest its merger with Wachovia.
The bank said that after its 2008 merger, its
customers have access to 6,600 Wells Fargo and Wachovia community
bank stores and 2,200 Wells Fargo home
mortgage locations, abolishing the need for a separate network of
financial offices.
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David Kvamme, president of Wells Fargo Financial said: “The economics of a
separate Wells Fargo Financial channel
are no longer viable, especially now that our customers have access
to the largest banking and mortgage store network in the United
States.
The bank assured that customers with existing
Wells Fargo Financial consumer loans will not be affected by the
restructuring.
Restructuring-related, pre-tax charges of
approximately $185mn will be incurred in total, with $137mn of that
total coming out of the company’s second quarter of 2010
results.
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