The Wells Fargo Merger
Legal and financial effects of the merger. In recent years, Wells Fargo and its subsidiaries have had a plethora of legal issues. These issues grew for the first three years after the merger.
During the years 2009 thru 2015, Wells Fargo has had to participate and defended a plethora of legal issues that were filed against them or their subsidiaries. Throughout these years Wells Fargo was involved in a total of 28 different legal issues. Many of the lawsuits main contributor were Wachovia. These legal issues ranged from violations to bankruptcy laws, wrongful termination to contracts, documents containing untrue statements, targeting and steering minorities into high-cost mortgages, additional mortgage lawsuits, breach of contract with Visa/Master
Card/and other banks, merger dealings with Wachovia/Citibank, foreclosure document practices and Wachovia artificially inflating common stock prices. Furthermore, the results of the litigation ranged from the court dates being set way in the future, being places in discovery, many of these legal issues were settled out of court and some of the cases were dismissed. After, the merger the legal issues have reduced dramatically. According to the Annual reports, Wells Fargo has not been a part of any new legal actions since 2012.
Once, the legal issues began to subside the assets and stock prices grew in value. Since the merger, there has been an 182% increase in total assets. From Jan 1, 2009, to Jan 1, 2016, the stock prices have increased 239%. From a financial and legal perspective, the merger was a success and Wells Fargo growth has been substantial.
During the years 2009 thru 2015, Wells Fargo has had to participate and defended a plethora of legal issues that were filed against them or their subsidiaries. Throughout these years Wells Fargo was involved in a total of 28 different legal issues. Many of the lawsuits main contributor were Wachovia. These legal issues ranged from violations to bankruptcy laws, wrongful termination to contracts, documents containing untrue statements, targeting and steering minorities into high-cost mortgages, additional mortgage lawsuits, breach of contract with Visa/Master
Card/and other banks, merger dealings with Wachovia/Citibank, foreclosure document practices and Wachovia artificially inflating common stock prices. Furthermore, the results of the litigation ranged from the court dates being set way in the future, being places in discovery, many of these legal issues were settled out of court and some of the cases were dismissed. After, the merger the legal issues have reduced dramatically. According to the Annual reports, Wells Fargo has not been a part of any new legal actions since 2012.
Once, the legal issues began to subside the assets and stock prices grew in value. Since the merger, there has been an 182% increase in total assets. From Jan 1, 2009, to Jan 1, 2016, the stock prices have increased 239%. From a financial and legal perspective, the merger was a success and Wells Fargo growth has been substantial.