Individual Financial Statement: Fill & Download for Free

1 IntroductionI have so far spent 46 years and four months in researching the answers to that question and much of the Answer is in the two books co-authored with John Carrington or in the further five I’ve written on my own or in many of the 228 Answer-articles on Quora and the other 150 on a few other sites. I’ll attempt a brief and inevitably incomplete reply. I apologise for the brevity: I have about half a million words, much of it unpublished, on this topic and I must prioritise my University studies which I have estimated may be complete after 50 years, in 2021.2 My Quora Profile in November 2016This profile summarises part of my my lifescript about these issues:“Part of mylifescript has been my investigation over more than four decades into the mechanisms of explosive economic growth in the USA from 1938-45, in post-war Japan 1945-75, and in post-rapprochemont China 1975-now. Following articles (co-authored by Lord Harold Lever in the Sunday Times during November and December 1979) I tried to advise the Thatcher governments about these issues, lobbying parliament through the Grylls Group during the 1979-83 years, but I failed to have any positive effect due to well-funded Clearing Bank opposition to the interests of the British people. The titles of the seven books I have co-authored or written accurately reflect my interest in these issues. The first four titles were all published by Macmillan Academic (now the Palgrave Press) and are:John C Carrington and George T Edwards, Financing Industrial Investment, 1979.John C Carrington and George Edwards, Reversing Economic Decline, 1981.George T Edwards, How Economic Growth and Inflation Happen, 1984.George T Edwards, The Role of Banks in Economic Development, The Economics of Industrial Resurgence (Foreword by Harold Lever), 1987.A fifth book published in June 2014 ia about Dr Osamu Shimomura who was "Japan's most influential postwar economist" whose insights and policies lie at the root of the high growth of the Tokyo Consensus economies: Shimomuran Economics and The Rise of The Tokyo Consensus and a sixth book tells the story of the economic bomb Lucky Bastards of the 20th Century and a seventh deals with the gerrymandering of the right to vote by the Cameron-led Coalition using the 2013 Individual Registration and Administration Act - seeHow David Cameron Fixed the 2015 Election and Much Else: How They Plan To Fix The Next Election, and How We Could Restore a Prosperous Representative Democracy In Britain: Amazon.co.uk: Mr George Tait Edwards: 9781517060794: Books “I have also published 76 articles mainly about economics at https://medium.com/@georgetaitedwardsand a further 44 articles athttp://londonprogressivejournal.com/user/view/2285It is not accurate to add the 228 Quora Answer-articles to the 76 Medium-site articles and the 44 articles published in the London Progressive Journal to form an overall total of 348 published items because about 30 articles are duplicated and another 20 co-authored or authored have been published in newspapers and magazines prior to 1990 plus there are ten articles co-authored with Bryan Gould on the London Progressive Website and a scattering of about half a dozen articles on various American Web locations such as the Huffingdon Post. I have also authored half a dozen lengthy blogs on Quora and elsewhere and there is little point in listing pre-1990 articles because these are not currently available on the internet.If you wish to develop a detailed understanding of this issue you should perhaps consider buying a few of these above-listed books as well as reading articles like this one.3 Further Researches3.1 The Credit Creation Key All economic miracles began with a source of expansionary funding in the form of promissory notes. All bank notes (invented by the Chinese Tang Dynasty 618–907 AD) were and are promissory notes because they were initially promises to pay a specific value, usually of gold or silver, and as such became a medium of exchange to purchase goods or services and a store of value to the holder. That observation is valid for all the major economic miracle countries and colonies, fromThe Southern Song Empire in China 980–1279The Three Tobacco States of the USA 1650–1776Scotland 1700–1800England 1750–1880Germany 1778-present dayThe Mantetsu, or the Japanese Colony of the South Manchurian Railway Company, 1905–1944FDR’s Economic Miracle 1938–44The Japanese Economic Miracle 1945–73The South Korean Economic Miracle 1960–1980The Chinese Economic Miracle 1975-now.This is an incomplete list. It could include Taiwan and Singapore and a separate analysis of East and West Germany prior to their reintegration into a single state, but I must draw the line somewhere, and the above examples are adequately illustrative while the potential additions are often less clear.3.2 Brief Comments on Each Of These Economic Miracles Only the briefest of comments is possible here: please explore the subject in depth by digging down into the references to the extent you wish.3.2.1 The Southern Song Empire in China 980–1279 As Professor Fitzgerald has remarked in his brief History of China, the industrial revolution nearly began in the Chinese Southern Song Empire during the three centuries from 980–1279 (See Economy of the Song dynasty - Wikipedia) but its development was halted by the genocidally murderous Mongols, who probably halved the previous population of China. Song development is perhaps best illustrated by one statistic: by 1078 the steel melt in China was about 125 thousand tons a year. Most people in the West have a limited idea and minimal recognition of the fact that China almost started the industrial revolution about four centuries before it began in Scotland. Wang Anshi (1021-1086) was the first practitioner of investment credit creation for productive purposes. That Chinese economist was an innovator and friend of emperor Shenzong of the Northern Song Dynasty where Wang was Prime Minister and Chancellor. He created credit for productive purposes and established the first welfare state. He believed the state had a duty of care towards all its citizens and instituted New Economic Policies to bring that about. See How did Wang Anshi contribute to the economic world?3.2.2 The Three Tobacco States of the USA 1650–1776 The economic development of the three US East coast states - the colonies of Maryland Virginia, and North Carolina - was accelerated by the use of the promissory notes, initially used as payment for tobacco by the Scottish Tobacco Lords. These promissory notes were redeemable for goods at the 125 stores established by the Tobacco Lords in these states, and these notes became a large alternative currency used for the purchase of slaves, wives and goods. The value of all items was assessed for several decades in terms of pounds of tobacco. See two of the outstanding books written by Sir Thomas Devine The Scottish Nation 1700–1999 (Penguin books, 1999) and The Tobacco Lords: A Study of the Tobacco Merchants of Glasgow and their Trading Activities, c. 1740–90 ( John Donald, 1975; Edinburgh University Press, 1992).3.2.3 Scotland 1700–1800 As part of my PhD studies at the University of Southampton, I am currently continually rewriting and extending the article at The Scottish Industrial Revolution, or The Scottish First Industrial Miracle 1700–1800 .The fortunes of the Tobacco Lords were initially based upon tobacco smuggling, much of it through Whitehaven in the Lake District.The Tobacco Lords, along with the Scots who had made fortunes in the Jamaican sugar trade (as Sir Tom Devine meticulously points out) can be identified as 90 people who invested in 36 Scottish companies - in three leather companies, nine sugar processing companies, seven linen companies, ten pig iron firms and seven cotton mills. They also invested (usually alongside landowners) in fourteen coal mining companies, and in three breweries, three rope and sailcloth companies, two glassworks, two soapworks and a pottery and delphworks. Overseas profits helped establish and grow about 88 Scottish companies which later became the backbone of the Scottish industrial revolution. 78 local banks and their bank branches were established, beginning with the Tobacco-Lord banks established in and around Glasgow, and these banks provided funds to the companies in which their founders were engaged.3.2.4 England 1750–1880 The English Industrial Revolution happened because the English rich established about 800 local banks to fund local industry. Here’s a map of where these banks were.Source: The Country Banks of England and Wales, Margaret Dawes and C N Ward-Perkins, Financial World Press, 2004, p17.As you can see, England was covered by about 800 of these “Country Banks” established by local worthies who used these banks to provide funding, mainly for the SME companies in which they were involved. These banks funded the companies which formed the English industrial revolution. Two-thirds of these country banks were amalgamated into the English Clearing Banks, and a third of these went bankrupt. A similar map today would have four dots in London. The British Clearing Banks no longer provide the SME investment funds that the “Country Banks”once did.These Country Banks of England served as Adam Smith’s “hidden hand” of the industrial revolution, transforming local inventiveness into factory floor innovation and production in the way Schumpeter saw as fundamental to the process of economic growth.In 1979, Professor Glynn Davies (with whom I discussed this issue) told the Wilson Committee that“If we had the industrial revolution with the banking system we have today, that revolution would have ben stillborn.”in 1810, any industrial company could form their own bank by paying £20 “Stamp Duty” for a Banker’s Licence in England at a British Post Office. Here’s a copy of that licence:Source: Page 55 (illustration 74 “Licence to Issue Bank Notes, 1810) of “British Banks and Banking: a pictorial history” by R M Fitzmaurice, Bradford Barton, Truro, 1975.These licences enabled hundreds of industrial companies to issue their own banknotes.3.2.5 Germany 1778-present dayGermany has the most effective local public bank system in the world - the Sparkassen Banks - which were founded to assist the foundation and development of German SMEs.See German public bank - Wikipediawhich lets you know thatthe first such bank was founded in 1778 and “founders were rich merchants, clerks and academics. They intended to develop solutions for people with low income to save small sums of money and to support business start-ups. In 1801 the first savings bank with a municipal guarantor was founded in Göttingen to fight poverty” and“The 431 savings banks operate a network of over 15,600 branches and offices and employ over 250,000 people.”So out of the German labour force of 45.9 millions, about 0.54% (250,000) work for the Sparkassen Banking System. The Sparkassen Banks had total assets of $1.533tr. (or Euros 1.112tr) on 31 December 2013 and an operating profit of $10.68bn (Euros 8.9bn). See the Fitch Ratings of the 417 Sparkassen-Finanzgruppe by Google by searching for “Total Loan Assets of Sparkassen Banks” and selecting https://www.dsgv.de/_.../Fitch_SFG_Full_Report_30_April_2014_published.pdf.These Sparkassen Banks are responsible for German exports exceeding those of China.As Hermann Simon has argued in his book about the Sparkassen-assisted development of “Hidden Champions” in Germany, the above result has been brought about due to the commitment of local banks to the funding of the development of high-technology excellence in German SMEs.Furthermore, the development of world-beating innovators in Germany contrasts with the very low level of “Hidden Champions” in many other countries.Source: Calculated from the above table by me.There are four major groups in this tablethe fully or partially German-speaking European nations, with Sparkassen-like public banking systems- Austria’s 128 Champions for 8.8m people, so 14.5 champions per million - 90% of the German level-Switzerland -110 champions for 8.0 millions, so about 13.8 champions per million - about 85% as effective as GermanyFour countries that operate at between 1 to 1.2 Champions per million people, at about six to eight percent as effectively as Germany - the USA, the UK and Italy and France.China seems to performs very badly in the creation of SME world champions - only 68 champions in a nation of 1,374m people - about 20.2 million people per SME champion - about 0.3% as effectively, or about 330 times worse than Germany. But some Chinese SME are larger than Simon’s definition allows, so the number of Chinese champions may be definitionally understated.More recent (2016) data shows that Germany now has 1,600 “Hidden Champions” and that these champions do not grow beyond a medium size.That may be because the Sparkassen banks support the growth of SMEs to a medium size but the lack of major (Shimomuran) funds prevents German SME champions from becoming significant world producers.The underlying rate of innovation in Germany appears to indicate about 20 champions per million people (based on 1600 champions from about 80 million people). The real rate may be higher than that, because of two factors: first, East Germany has not yet arrived at the same innovation level as West Germany due to its lengthy rule by Russia, and second, the rationalisation of Sparkassen Banks into 413 banks from their 2,834 local banks in 1903 has reduced the availability of funding in those locations where the 15,600 or so local bank branches may lack the funding power and focus of a local Bank HQ.I provisionally calculate that the potential maximum rate of innovation may lie in the range of 25 to 30 champions per million people.Governments operating under the mistaken system of Neo-Liberal economics are failing more than 95% of the innovators in their countries due to the lack of local banks providing SME establishment and development funding.3.2.6 The Mantetsu, or the Japanese Colony of the South Manchurian Railway Company, 1905–1944The Mantetsu was funded by large amounts of investment credit creation agreed by the Bank of Japan. It was a very successful Japanese colony. SeeThe Comprehensive History of South Manchurian Railways Company [満鉄全史] - Japan Society of the UKfor brief information. Incidentally, Shinzo Abe’s grandfather managed the Mantetsu for a while.3.2.7 FDR’s Economic Miracle 1938–44 SeeFDR’s American Economic Miracle 1938-44, or the First Economic Bomb - The USA from 1938 to 1944 (Part 1)Part 2 has not so far been published, because I’m still working on it. The American single period of hegemonic dominance when the USA was the leading world economy lasted for 70 years from 1945 to 2015, and that resulted from FDR’s policy (assisted by John Kenneth Galbraith) of investment credit creation.The USA doubled the real size of its economy between 1938 and 1944, growing at an average rate of 12.2% pa. There were perhaps 26,000 local banks in the USA during that period and FED credit creation canalised funds to the millions of US SMEs,who played a crucial part in inventing and innovating the products required to win the war.The aircraft production lines in US factories during the period 1940–44 had to be continually stopped to instal the latest products of the SME factories producing plane components.3.2.8 The Japanese Economic Miracle 1945–73 SeeHow Japan Zoomed From War Devastation into Prosperity 1945–52Dr Osamu Shimomura was the great economic growth guru who helped PM Hayato Ikeda achieve the objective of the “Income-Doubling Plan”, which aimed to double the prosperity of the Japanese people during the decade 1960–1970. In fact the plan succeeded in 1966, after six years. SeeDr Osamu Shimomura (1910–89) — His Major Achievements andThe Rough Guide To Shimomuran Economics – George Tait Edwards – Medium andHow Long Will The West Lag Behind – George Tait Edwards – Medium3.2.9 The South Korean Economic Miracle 1960–1980President Park of South Korea copied the key Japanese economic-accelerating institutions and the South Korean economy performed the “Miracle on the Han River” growing at an average rate of 14% pa from 1960 to 1980. See sections 1.3 to 1.6 for an incomplete description of that miracle atMiracle on the Han River - WikipediaPresident Chung-He Park was assassinated on Friday, October 26, 1979 by his Head of Security Jae-Kyu Kim and the economic miracle ceased the following year as the new new government fell into line with Washington Consensus macroeconomics.3.2.10 The Chinese Economic Miracle 1975-now.SeeGeorge Tait Edwards's answer to How did China develop so quickly? When did it start to happen? How did the government manage to stay focused and executed plans so fast and efficiently as they aimed?How China Surpasses The EU and the USA, or The Seven Pre-Requisites for High-Growth Shimomuran… andGeorge Tait Edwards's answer to What did China get right in its economic and social development which the US got wrong?4 Conclusions and A Very Brief Answer4.1 The Need For An Intelligent and Benign GovernmentThere are only two kinds of governments in the world - there are those which rule in the interests all the people and those who act in the financial interests of the rich and privileged. China is in the first category and the previous hegemonic leaders of the UK and the USA are now in the second category.During the 1945–1978 Keynesian post-war period, both the UK and USA did act in the interests of all of their people. The establishment of the NHS and a welfare state in Britain and the widespread American prosperity illustrated that. Only governments maximising their economic development through local banking system support for SME development and introducing welfare state systems and thus acting in the interests all their people can have high growth and hegemonic leadership.But after the elections of Thatcher and Reagan in 1979 and 1980, the British and American Governments acted in the interests of their monied elites and a greater share of the annual growth of national income went to the already rich. Both countries had financial policies but no industrial policies so their manufacturing industries declined and large sections of it were often destroyed and their previously prosperous workforces experienced stagnant or reducing wage levels.See the mistaken IMF report about this at Drivers of Declining Labor Share of IncomeNaturally these IMF authors are not prepared to see neo-liberalism as the cause of the declining labour share in the western and westernised economies. But it is.Monetarism/ Washington Consensus Macroeconomics/Neoliberalism /Austerity is responsible for the decline of the West, because it prioritises tax cuts for the rich and produces many millionaires and billionaires but funds neither SMEs nor manufacturing industry nor rising worker incomes.Shimomuran macroeconomics is responsible for the rise of China, which is becoming a tremendous world power because it has involved nearly all of its people in its recent development. There is a declining wage share in China also but this does not matter when economic growth is so high and is being transferred to workers on a scale that results in continually increasing prosperity. The Tokyo Consensus economies have lifted over a billion people out of poverty during the last 40 years. The Washington Consensus (WC) economies have failed to improve similarly the lot of the rest of the world in the WC Zone. SeeWashington Consensus Macroeconomics Is Not The Best System For Increasing Prosperity and Economic…Which contains the table below which illustrates that point.Both South Korea (in 1981) and Japan (in 1991) adopted Washington Consensus policies and became low-growth economies (in Japan, 26 years of relative economic stagnation) and now have high percentages of poverty due to that near-to-useless WC set of government activities.4.2 The Importance Of SME DevelopmentIn every economy the Small and Medium Size Enterprises (SMEs) arethe most numerous enterprises, typically over 99% of all enterprisesthe source of most employment and most employment growththe wellsprings of invention and innovation within each nation.All economic miracles have begun with the funding of these local enterprises by local banks established by the rich and also through the direct involvement of local landowners and the privileged.It makes an enormous difference whether these banks exist or have been shut down. They are essential to bring about a high invention and innovation-based future development.5 A Short AnswerThe Answer to what makes GDP grow and stay high is that Governments can act toFund invention and innovation by creating and supporting local public banks to establish and develop local SMEsFund the conversion of Small Enterprises to Medium-sized Enterprises through regional banks dedicated to that purposeUnderstand and practise the no-cost Shimomuran investment CB credit creation system to produce continual high green economic growth and fund major world industriesAnd canalise that credit creation for all of its necessary aspects, for major industry investment, social overhead capital investments (eg new cities, roads, hospitals, educational facilities, public buildings, etc) and adding to demand in a demand deficient economy, funding new government projects, etc.See http://londonprogressivejournal.com/article/view/1685/the-many-major-uses-of-investment-credit-creation-a-brief-walk-through-the-observed-results-so-far-and-the-future-possibilities-made-available-through-shimomuran-economics6 A Short Personal StatementI have a single-minded and focused intention: I intend eventually to do for failing economies what Gordon Ramsey does for failing restaurants. Tenacity in the pursuit of personal objectives is, in my opinion, one of the keys to success in life, and I think I may have been blessed with that.More follows in due course.

Wells Fargo - WikipediaWells FargoFrom Wikipedia, the free encyclopediaJump to navigationJump to searchFor other uses, see Wells Fargo (disambiguation).Wells Fargo & CompanyCompany logo since 2009Wells Fargo's headquarters complex in San Francisco, CaliforniaTypePublicTraded asNYSE: WFCS&P 100 componentS&P 500 componentISINUS9497461015IndustryBankingFinancial servicesInsurancePredecessorsCollapsible list[show]FoundedMarch 18, 1852 (167 years ago) in San Francisco, California, USFoundersHenry WellsWilliam FargoHeadquarters420 Montgomery Street, San Francisco, California, USNumber of locations8,050 branches (2018)13,000 ATMs (2018)Area servedWorldwideKey peopleElizabeth Duke(Chair)C. Allen Parker(Interim President & CEO)John R. Shrewsberry(CFO)ProductsCollapsible list[show]RevenueUS$86.40 billion (2018)Operating incomeUS$30.28 billion (2018)Net incomeUS$22.39 billion (2018)Total assetsUS$1.895 trillion (2018)Total equityUS$197.06 billion (2018)OwnerBerkshire Hathaway (10%)Membersc.70 million (2018)Number of employeesc.258,700 (2018)SubsidiariesWells Fargo AdvisorsWells Fargo Bank, N.A.Wells Fargo RailWells Fargo SecuritiesRatingFitch: A+ (2018)Moody's: A2 (2018)S&P: A− (2018)Websitewellsfargo.comFootnotes / references[1][2][3][4][5][6][7][8]Wells Fargo branch in Berkeley, CaliforniaWells Fargo & Company is an American multinational financial servicescompany headquartered in San Francisco, California, with central offices throughout the United States.[9]It is the world's fourth-largest bank by market capitalization and the fourth largest bank in the US by total assets.[10][11]Wells Fargo is ranked #26 on the 2018 Fortune 500 rankings of the largest US corporations by total revenue.[12]In July 2015, Wells Fargo became the world's largest bank by market capitalization, edging past ICBC,[11]before slipping behind JPMorgan Chase in September 2016, in the wake of a scandal involving the creation of over 2 million fake bank accounts by Wells Fargo employees.[10]Wells Fargo fell behind Bank of America to third by bank deposits in 2017[13]and behind Citigroup to fourth by total assets in 2018.[14]The firm's primary operating subsidiary is national bank Wells Fargo Bank, N.A., which designates its main office as Sioux Falls, South Dakota. Wells Fargo in its present form is a result of a merger between San Francisco–based Wells Fargo & Company and Minneapolis-based Norwest Corporation in 1998 and the subsequent 2008 acquisition of Charlotte-based Wachovia. Following the mergers, the company transferred its headquarters to Wells Fargo's headquarters in San Francisco and merged its operating subsidiary with Wells Fargo's operating subsidiary in Sioux Falls. Along with JPMorgan Chase, Bank of America, and Citigroup, Wells Fargo is one of the "Big Four Banks" of the United States.[15]As of June 2018, it had 8,050 branches and 13,000 ATMs.[2]In 2018 the company had operations in 35 countries with over 70 million customers globally.[2]In February 2014, Wells Fargo was named the world's most valuable bank brand for the second consecutive year[16]in The Banker and Brand Financestudy of the top 500 banking brands.[17]In 2016, Wells Fargo ranked 7th on the Forbes Magazine Global 2000 list of largest public companies in the world and ranked 27th on the Fortune 500 list of the largest companies in the US.[7][18]In 2015, the company was ranked the 22nd most admired company in the world, and the 7th most respected company in the world.[7]As of December 2018, the company had a Standard & Poors credit rating of A−.[8]However, for a brief period in 2007, the company was the only AAA‑rated bank, reflecting the highest credit rating from two firms.[19]On February 2, 2018, the US Federal Reserve Bank barred Wells Fargo from growing its nearly US$2 trillion-asset base any further, based upon years of misconduct, until Wells Fargo fixes its internal problems to the satisfaction of the Federal Reserve.[20]In April 2018, The Wall Street Journal reported that the US Department of Labor had launched a probe into whether Wells Fargo was pushing its customers into more expensive retirement plans as well as intoretirement funds managed by Wells Fargo itself.[21][22]Subsequently in May 2018, The Wall Street Journal reported that Wells Fargo's business banking group had improperly altered documents about business clients in 2017 and early 2018.[23]In June 2018, Wells Fargo began retreating from retail bankingin the Midwestern United States by announcing the sale of all its physical bank branch locations in Indiana, Michigan, and Ohio to Flagstar Bank.[24][13]Contents1History1.1Wells Fargo History Museums1.2Key dates1.3Wachovia acquisition1.4Investment by US Treasury Department during 2008 financial crisis1.4.1History of Wells Fargo Securities1.5Environmental record2Operations and services2.1Community banking2.1.1Consumer lending2.1.2Wells Fargo private student loans2.1.3Equipment lending2.2Wealth and Investment Management2.2.1Wells Fargo Asset Management2.2.2Wells Fargo Securities2.3Cross-selling2.4International operations2.5Charter3Lawsuits, fines and controversies3.11981 MAPS Wells Fargo embezzlement scandal3.2Higher costs charged to African-American and Hispanic borrowers3.3Failure to monitor suspected money laundering3.4Overdraft fees3.5Settlement and fines regarding mortgage servicing practices3.6SEC fine due to inadequate risk disclosures3.7Lawsuit by FHA over loan underwriting3.8Lawsuit due to premium inflation on forced place insurance3.9Lawsuit regarding excessive overdraft fees3.102015 Violation of New York credit card laws3.11Executive compensation3.12Tax avoidance and lobbying3.13Prison industry investment3.14SEC settlement for insider trading case3.15Wells Fargo account fraud scandal3.16Racketeering lawsuit for mortgage appraisal overcharges3.17Dakota Access Pipeline investment3.18Failure to comply with document security requirements3.19Connections to the gun industry and NRA3.20Discrimination against female workers3.21Auto insurance4CEO-to-worker pay ratio5See also6Notes7References8External linksHistory[edit]Main article: History of Wells FargoWells Fargo History Museums[edit]The company operates 12 museums, most known as a Wells Fargo History Museum,[25]in its corporate buildings inCharlotte, North Carolina, Denver, Colorado, Des Moines, Iowa, Los Angeles, California, Minneapolis, Minnesota,Philadelphia, Pennsylvania, Phoenix, Arizona, Portland, Oregon, Sacramento, California and San Francisco, California. Displays include original stagecoaches, photographs, gold nuggets and mining artifacts, the Pony Express, telegraphequipment and historic bank artifacts. The company also operates a museum about company history in the Pony Express Terminal in Old Sacramento State Historic Park in Sacramento, California, which was the company's second office,[26]and the Wells Fargo History Museum in Old Town San Diego State Historic Park in San Diego, California.[27]Wells Fargo operates the Alaska Heritage Museum in Anchorage, Alaska, which features a large collection of Alaskan Native artifacts, ivory carvings and baskets, fine art by Alaskan artists, and displays about Wells Fargo history in the Alaskan Gold Rush era.[28]Key dates[edit]A late 19th Century Wells Fargo Bank in Apache Junction, Arizona1879 Wells Fargo Stagecoach on exhibit in the Wells Fargo Museum in PhoenixThe Wells Fargo Stage Stop built in 1872 in Black Canyon City, ArizonaWells Fargo bank in Chinatown,Houston, TexasA remodeled Wells Fargo bank inFort Worth, TexasWells Fargo in Laredo, Texas1852: Henry Wells and William G. Fargo, the two founders of American Express, formed Wells Fargo & Company to provide express and banking services to California.1860: Wells Fargo gained control of Butterfield Overland Mail Company, leading to operation of the western portion of the Pony Express.1866: "Grand consolidation" united Wells Fargo, Holladay, and Overland Mail stage lines under the Wells Fargo name.1905: Wells Fargo separated its banking and express operations; Wells Fargo's bank was merged with the Nevada National Bank to form the Wells Fargo Nevada National Bank.1918: As a wartime measure, the US Federal Government nationalized Wells Fargo's express franchise into a federal agency known as the US Railway Express Agency. The US Federal Government took control of the express company. The bank began rebuilding but with a focus on commercial markets. After the war, REA was privatized and continued service until 1975.1923: Wells Fargo Nevada merged with the Union Trust Company to form the Wells Fargo Bank & Union Trust Company.1929: Northwest Bancorporation was formed as a banking association.1954: Wells Fargo & Union Trust shortened its name to Wells Fargo Bank.1960: Wells Fargo merged with American Trust Company to form the Wells Fargo Bank American Trust Company.1962: Wells Fargo American Trust again shortened its name to Wells Fargo Bank.1968: Wells Fargo converted to a federal banking charter, becoming Wells Fargo Bank, N.A. Wells Fargo merged with Henry Trione's Sonoma Mortgage in a $10.8 million stock transfer, making Trione the largest shareholder in Wells Fargo until Warren Buffett and Walter Annenberg later surpassed him.[29]1969: Wells Fargo & Company holding company was formed, with Wells Fargo Bank as its main subsidiary.1982: Northwest Bancorporation acquired consumer finance firm Dial Finance which is renamed Norwest Financial Service the following year.1983: Northwest Bancorporation was renamed Norwest Corporation.1983: White Eagle, largest US bank heist to date took place at a Wells Fargo depot in West Hartford, Connecticut.1986: Wells Fargo acquired Crocker National Corporation from Midland Bank.1987: Wells Fargo acquired the personal trust business of Bank of America.1988: Wells Fargo acquired Barclays Bank of California from Barclays plc.[30]1995: Wells Fargo became the first major US financial services firm to offer Internet banking.1996: Wells Fargo acquired First Interstate Bancorp for US$11.6 billion.[31]1998: Wells Fargo Bank was acquired by Norwest Corporation of Minneapolis.[32](Norwest was the surviving company; however, it chose to continue business under the more well-known Wells Fargo name.)2000: Wells Fargo Bank acquired National Bank of Alaska.[33]2000: Wells Fargo acquired First Security Corporation.[34]2001: Wells Fargo acquired H.D. Vest Financial Services for US$128 million, but sold it in 2015 for US$580 million.[35]2007: Wells Fargo acquired CIT's construction unit.[36]2007: Wells Fargo acquired Placer Sierra Bank.2007: Wells Fargo acquired Greater Bay Bancorp, which had US$7.4 billion in assets, in a US$1.5 billion transaction.[37][38]2008: Wells Fargo acquired United Bancorporation of Wyoming.[39]2008: Wells Fargo acquired Century Bancshares of Texas.[40]2008: Wells Fargo acquired Wachovia Corporation.2009: Wells Fargo acquired North Coast Surety Insurance Services.[41]2012: Wells Fargo acquired Merlin Securities.[42][43]2012: Wells Fargo acquired stake in The Rock Creek Group LP.2019: CEO Tim Sloan resigns causing stock to jump and leaves General Counsel Allen Parker as Interim CEOWachovia acquisition[edit]A former Wachovia branch converted to Wells Fargo in the fall of 2011 in Durham, North CarolinaOn October 3, 2008, Wachovia agreed to be bought by Wells Fargo for about US$14.8 billion in an all-stock transaction. This news came four days after the USFederal Deposit Insurance Corporation (FDIC) made moves to have Citigroup buy Wachovia for US$2.1 billion. Citigroup protested Wachovia's agreement to sell itself to Wells Fargo and threatened legal action over the matter. However, the deal with Wells Fargo overwhelmingly won shareholder approval since it valued Wachovia at about seven times what Citigroup offered. To further ensure shareholder approval, Wachovia issued Wells Fargo preferred stock that holds 39.9% of the voting power in the company.[44]On October 4, 2008, a New York state judge issued a temporary injunction blocking the transaction from going forward while the situation was sorted out.[45]Citigroup alleged that they had an exclusivity agreement with Wachovia that barred Wachovia from negotiating with other potential buyers. The injunction was overturned late in the evening on October 5, 2008, by New York state appeals court.[46]Citigroup and Wells Fargo then entered into negotiations brokered by the FDIC to reach an amicable solution to the impasse. Those negotiations failed. Sources say that Citigroup was unwilling to take on more risk than the US$42 billion that would have been the cap under the previous FDIC-backed deal (with the FDIC incurring all losses over US$42 billion). Citigroup did not block the merger, but indicated they would seek damages of US$60 billion for breach of an alleged exclusivity agreement with Wachovia.[47]Investment by US Treasury Department during 2008 financial crisis[edit]On October 28, 2008, Wells Fargo was the recipient of US$25 billion of Emergency Economic Stabilization Act funds in the form of a preferred stock purchase by the US Treasury Department.[48][49]Tests by the US Federal Government revealed that Wells Fargo needed an additional US$13.7 billion in order to remain well capitalized if the economy were to deteriorate further under stress test scenarios. On May 11, 2009, Wells Fargo announced an additional stock offering which was completed on May 13, 2009, raising US$8.6 billion in capital. The remaining US$4.9 billion in capital was planned to be raised through earnings. On Dec. 23, 2009, Wells Fargo redeemed the US$25 billion of preferred stock issued to the US Treasury. As part of the redemption of the preferred stock, Wells Fargo also paid accrued dividends of US$131.9 million, bringing the total dividends paid to US$1.441 billion since the preferred stock was issued in October 2008.[50]History of Wells Fargo Securities[edit]Wells Fargo Securities was established in 2009 to house Wells Fargo's capital markets group which it obtained during the Wachovia acquisition. Prior to that point, Wells Fargo had little to no participation in investment banking activities, though Wachovia had a well established investment banking practice which it operated under the Wachovia Securities banner.Wachovia's institutional capital markets and investment banking business arose from the merger of Wachovia and First Union. First Union had bought Bowles Hollowell Connor & Co. on April 30, 1998 adding to its merger and acquisition, high yield, leveraged finance, equity underwriting, private placement, loan syndication, risk management, and public financecapabilities.[51]Legacy components of Wells Fargo Securities include Wachovia Securities, Bowles Hollowell Connor & Co., Barrington Associates, Halsey, Stuart & Co., Leopold Cahn & Co., Bache & Co.. Prudential Securities, A.G. Edwards, Inc. and the investment banking arm of Citadel LLC.[52]Duke Energy Center in Charlotte, North Carolina home of Wells Fargo Securities[53]Environmental record[edit]In 2009, Wells Fargo ranked #1 among banks and insurance companies, and #13 overall, inNewsweek Magazine's inaugural "Green Rankings" of the country's 500 largest companies.[54]In 2013, the company was recognized by the EPA Center for Corporate Climate Leadership as a Climate Leadership Award winner, in the category "Excellence in Greenhouse Gas Management (Goal Setting Certificate)"; this recognition was for the company's aim to reduce its absolute greenhouse gas emissions from its US operations by 35% by 2020 versus 2008 levels.[55]As of 2013, Wells Fargo had provided more than US$6 billion in financing for environmentally beneficial business opportunities, including supporting 185 commercial-scale solar photovoltaic projects and 27 utility-scale wind projects nationwide.[56][better source needed]Wells Fargo has launched what it believes to be the first blog among its industry peers to report on its environmental stewardship and to solicit feedback and ideas from its stakeholders.[57][58]We want to be as open and clear as possible about our environmental efforts – both our accomplishments and challenges – and share our experiences, ideas and thoughts as we work to integrate environmental responsibility into everything we do," said Mary Wenzel, director of Environmental Affairs. "We also want to hear and learn from our customers. By working together, we can do even more to protect and preserve natural resources for future generations.—Mary Wenzel, director of Environmental Affairs, Wells Fargo, 2010 press releaseOperations and services[edit]Map of Wells Fargo branches in August 2015Wells Fargo delineates three different business segments when reporting results:Community Banking; Wholesale Banking; and Wealth, Brokerage and Retirement.Community banking[edit]The Community Banking segment includes Regional Banking, Diversified Products, and Consumer Deposits groups, as well as Wells Fargo Customer Connection (formerly Wells Fargo Phone Bank, Wachovia Direct Access, the National Business Banking Center, and Credit Card Customer Service). Wells Fargo also has around 2,000 stand-alone mortgage branches throughout the country.[59]There are mini-branches located inside of other buildings, which are almost exclusively grocery stores, that usually contain ATMs, basicteller services, and, space permitting, an office for private meetings with customers.[60]In March 2017, Wells Fargo announced a plan to offer smartphone-based transactions with mobile wallets including Wells Fargo Wallet, Android Pay and Samsung Pay.[61]Consumer lending[edit]As of Q3 2011, Wells Fargo Home Mortgage was the largest retail mortgage lender in the United States, originating one out of every four home loans.[62]Wells Fargo services US$1.8 trillion in home mortgages, the second largest servicing portfolio in the US[63]It was reported in 2012 Wells Fargo reached 30% market share for US mortgages, however, the then-CEO John Stumpf had said the numbers were misleading because about half of that share represented the aggregation of smaller loans that were then sold on in the secondary market. In 2013, its share was closer to 22%; of which eight percentage points was aggregation.[64]Wells Fargo private student loans[edit]Wells Fargo private student loans are available to students to pay for college expenses, such as tuition, books, computers, or housing.[65]Loans are available for undergraduate, career and community colleges, graduate school, law school and medical school. Wells Fargo also provides private student loan consolidation and student loans for parents.[citation needed]Equipment lending[edit]Wells Fargo has various divisions that finance and lease equipment to different types of companies.[66][citation needed]One venture is Wells Fargo Rail, which in 2015 agreed to the purchase of GE Capital Rail Services and merged in with First Union Rail.[67]In late 2015, it was announced that Wells Fargo would buy three GE units focused on business loans equipment financing.[68]Wealth and Investment Management[edit]Wells Fargo Advisors headquarters in St. Louis, MissouriWells Fargo offers investment products through its subsidiaries, Wells Fargo Investments, LLC and Wells Fargo Advisors, LLC, as well as through national broker/dealer firms. The company also serves high-net-worth individuals through its private bank and family wealthgroup.The logo for Wells Fargo AdvisorsWells Fargo Advisors is the brokerage subsidiary of Wells Fargo, located in St. Louis, Missouri. It is the third largest brokerage firm in the United States as of the third quarter of 2010 with US$1.1 trillion retail client assets under management.[7]Wells Fargo Advisors was known as Wachovia Securities until May 1, 2009, when it legally changed names following the Wells Fargo's acquisition of Wachovia Corporation.In September 2018, Wells Fargo announced to cut 26,450 jobs by 2020 to reduce costs by US$4 billion.[69]Wells Fargo Asset Management[edit]Wells Fargo Funds Management, LLCTypeSubsidiaryIndustryMutual fundsHeadquartersKansas City, MissouriArea servedWorldwideWebsitewellsfargofunds.comWells Fargo Asset Management (WFAM) is the trade name for the mutual funddivision of Wells Fargo & Co. Mutual funds are offered under the Wells Fargo Advantage Funds brand name.Wells Fargo Securities[edit]Wells Fargo Securities, LLCTypeSubsidiaryIndustryInvestment BankingHeadquartersCharlotte, North CarolinaArea servedWorldwideWebsitewww.wellsfargo.com/com/securities/The Seagram Building: Home of Wells Fargo Securities' New York offices and trading floorsWells Fargo Securities (WFS) is the investment banking division of Wells Fargo & Co. The size and financial performance of this group is not disclosed publicly, but analysts believe the investment banking group houses approximately 4,500 employees and generates between US$3 and US$4 billion per year in investment banking revenue. By comparison, two of Wells Fargo's largest competitors, Bank of America and J.P. Morgan Chasegenerated approximately US$5.5 billion and US$6 billion respectively in 2011 (not including sales and trading revenue).[70]WFS headquarters are in Charlotte, North Carolina, with other US offices in New York, Minneapolis, Boston, Houston, San Francisco, and Los Angeles, with international offices in London, Hong Kong, Singapore, and Tokyo.Cross-selling[edit]A key part of Wells Fargo's business strategy is cross-selling, the practice of encouraging existing customers to buy additional banking products.[71]Customers inquiring about their checking account balance may be pitched mortgage deals and mortgage holders may be pitched credit card offers in an attempt to increase the customer's profitability to the bank.[72][73]Other banks have attempted to emulate Wells Fargo's cross-selling practices (described byThe Wall Street Journal as a hard sell technique);[72]Forbes magazine describes Wells Fargo as "better than anyone" at the practice.[73]International operations[edit]Wells Fargo has banking services throughout the world, with offices in Hong Kong, London, Dubai, Singapore, Tokyo,Toronto.[74][75]They operate back-offices in India and the Philippines with more than 3,000 staff.[76]Charter[edit]Wells Fargo operates under Charter #1, the first national bank charter issued in the United States. This charter was issued to First National Bank of Philadelphia on June 20, 1863, by the Office of the Comptroller of the Currency.[77]Traditionally, acquiring banks assume the earliest issued charter number. Thus, the first charter passed from First National Bank of Philadelphia to Wells Fargo through its 2008 acquisition of Wachovia, which had inherited it through one of its many acquisitions.Lawsuits, fines and controversies[edit]A Wells Fargo branch in Logan, Utah1981 MAPS Wells Fargo embezzlement scandal[edit]In 1981, it was discovered that a Wells Fargo assistant operations officer, Lloyd Benjamin "Ben" Lewis, had perpetrated one of the largest embezzlements in history, through its Beverly Drive branch. During 1978 - 1981, Lewis had successfully written phony debit and credit receipts to benefit boxing promoters Harold J. Smith (né Ross Eugene Fields) and Sam "Sammie" Marshall, chairman and president, respectively, of Muhammed Ali Professional Sports, Inc. (MAPS), of which Lewis was also listed as a director; Marshall, too, was a former employee of the same Wells Fargo branch as Lewis. In excess of US$300,000 was paid to Lewis, who pled guilty to embezzlement andconspiracy charges in 1981, and testified against his co-conspirators for a reduced five-year sentence.[78](Boxer Muhammed Ali had received a fee for the use of his name, and had no other involvement with the organization.[79])Higher costs charged to African-American and Hispanic borrowers[edit]Illinois Attorney General Lisa Madigan filed suit against Wells Fargo on July 31, 2009, alleging that the bank steers African Americans and Hispanics into high-cost subprime loans. A Wells Fargo spokesman responded that "The policies, systems, and controls we have in place – including in Illinois – ensure race is not a factor..."[80]An affidavit filed in the case stated that loan officers had referred to black mortgage-seekers as "mud people," and the subprime loans as "ghetto loans."[81]According to Beth Jacobson, a loan officer at Wells Fargo interviewed for a report in The New York Times, "We just went right after them. Wells Fargo mortgage had an emerging-markets unit that specifically targeted black churches, because it figured church leaders had a lot of influence and could convince congregants to take out subprime loans." The report goes on to present data from the city of Baltimore, where "more than half the properties subject to foreclosure on a Wells Fargo loan from 2005 to 2008 now stand vacant. And 71 percent of those are in predominantly black neighborhoods."[82]Wells Fargo agreed to pay US$125 million to subprime borrowers and US$50 million in direct down payment assistance in certain areas, for a total of US$175 million.[83][84]Failure to monitor suspected money laundering[edit]In a March 2010 agreement with US federal prosecutors, Wells Fargo acknowledged that between 2004 and 2007 Wachoviahad failed to monitor and report suspected money laundering by narcotics traffickers, including the cash used to buy four planes that shipped a total of 22 tons of cocaine into Mexico.[85]Overdraft fees[edit]In August 2010, Wells Fargo was fined by US District Court judge William Alsup for overdraft practices designed to "gouge" consumers and "profiteer" at their expense, and for misleading consumers about how the bank processed transactions and assessed overdraft fees.[86][87][88]Settlement and fines regarding mortgage servicing practices[edit]On February 9, 2012, it was announced that the five largest mortgage servicers (Ally Financial, Bank of America, Citi,JPMorgan Chase, and Wells Fargo) agreed to a settlement with the US Federal Government and 49 states.[89]The settlement, known as the National Mortgage Settlement (NMS), required the servicers to provide about US$26 billion in relief to distressed homeowners and in direct payments to the federal and state governments. This settlement amount makes the NMS the second largest civil settlement in US history, only trailing the Tobacco Master Settlement Agreement.[90]The five banks were also required to comply with 305 new mortgage servicing standards. Oklahoma held out and agreed to settle with the banks separately.On April 5, 2012, a federal judge ordered Wells Fargo to pay US$3.1 million in punitive damages over a single loan, one of the largest fines for a bank ever for mortgaging service misconduct.[91]Elizabeth Magner, a federal bankruptcy judge in the Eastern District of Louisiana, cited the bank's behavior as "highly reprehensible",[92]stating that Wells Fargo has taken advantage of borrowers who rely on the bank's accurate calculations. She went on to add, "perhaps more disturbing is Wells Fargo's refusal to voluntarily correct its errors. It prefers to rely on the ignorance of borrowers or their inability to fund a challenge to its demands, rather than voluntarily relinquish gains obtained through improper accounting methods."[93]SEC fine due to inadequate risk disclosures[edit]On August 14, 2012, Wells Fargo agreed to pay around US$6.5 million to settle US Securities and Exchange Commission(SEC) charges that in 2007 it sold risky mortgage-backed securities without fully realizing their dangers.[94][95]Lawsuit by FHA over loan underwriting[edit]On October 9, 2012, the US Federal Government sued the bank under the False Claims Act at the federal court inManhattan, New York. The suit alleges that Wells Fargo defrauded the US Federal Housing Administration (FHA) over the past ten years, underwriting over 100,000 FHA backed loans when over half did not qualify for the program. This suit is the third allegation levied against Wells Fargo in 2012.[96]In October 2012, Wells Fargo was sued by United States Attorney Preet Bharara over questionable mortgage deals.[97]Lawsuit due to premium inflation on forced place insurance[edit]In April 2013, Wells Fargo settled a suit with 24,000 Florida homeowners alongside insurer QBE, in which Wells Fargo was accused of inflating premiums on forced-place insurance.[98]Lawsuit regarding excessive overdraft fees[edit]In May 2013, Wells Fargo paid US$203 million to settle class-action litigation accusing the bank of imposing excessiveoverdraft fees on checking-account customers. Also in May, the New York attorney-general, Eric Schneiderman, announced a lawsuit against Wells Fargo over alleged violations of the national mortgage settlement, a US$25 billion deal struck between 49 state attorneys and the five-largest mortgage servicers in the US. Schneidermann claimed Wells Fargo had violated rules over giving fair and timely serving.[64]2015 Violation of New York credit card laws[edit]In February 2015, Wells Fargo agreed to pay US$4 million for violations where an affiliate took interest in the homes of borrowers in exchange for opening credit card accounts for the homeowners. This is illegal according to New York credit card laws. There was a US$2 million penalty with the other US$2 million going towards restitution to customers.[99]Executive compensation[edit]With CEO John Stumpf being paid 473 times more than the median employee, Wells Fargo ranks number 33 among the S&P 500 companies for CEO—employee pay inequality. In October 2014, a Wells Fargo employee earning US$15 per hour emailed the CEO—copying 200,000 other employees—asking that all employees be given a US$10,000 per year raise taken from a portion of annual corporate profits to address wage stagnation and income inequality. After being contacted by the media, Wells Fargo responded that all employees receive "market competitive" pay and benefits significantly above US federal minimums.[100][101]Tax avoidance and lobbying[edit]In December 2011, the non-partisan organization Public Campaign criticized Wells Fargo for spending US$11 million onlobbying and not paying any taxes during 2008–2010, instead getting US$681 million in tax rebates, despite making a profit of US$49 billion, laying off 6,385 workers since 2008, and increasing executive pay by 180% to US$49.8 million in 2010 for its top five executives.[102]As of 2014 however, at an effective tax rate of 31.2% of its income, Wells Fargo is the fourth-largest payer of corporation tax in the US.[103]Prison industry investment[edit]Main article: Prison–industrial complexThe GEO Group, Inc., a multi-national provider of for-profit private prisons, received investments made by Wells Fargo mutual funds on behalf of clients, not investments made by Wells Fargo and Company, according to company statements.[104]By March 2012, its stake had grown to more than 4.4 million shares worth US$86.7 million.[105]As of November, 2012, the latest SEC filings reveal that Wells Fargo has divested 33% of its dispositive holdings of GEO's stock, which reduces Wells Fargo's holdings to 4.98% of Geo Group's common stock. By reducing its holdings to less than 5%, Wells Fargo will no longer be required to disclose some financial dealings with GEO.[106]While a coalition of organizations, National People's Action Campaign, have seen some success in pressuring Wells Fargo to divest from private prison companies like GEO Group, the company continues to make such investments.[107]SEC settlement for insider trading case[edit]In 2015, an analyst at Wells Fargo settled an insider trading case with the US Securities and Exchange Commission (SEC). The former employee was charged with insider trading alongside an ex-Wells Fargo trader.[108]Sadis & Goldberg obtained a settlement that permitted the client to continue in securities industry, while neither admitting nor denying one charge of negligence-based § 17(a)(3) claim, and paying a US$75,000 civil penalty[109]Wells Fargo account fraud scandal[edit]Main article: Wells Fargo account fraud scandalIn September 2016, Wells Fargo was issued a combined total of US$185 million in fines for creating over 1.5 million checking and savings accounts and 500,000 credit cards that its customers never authorized. The US Consumer Financial Protection Bureau issued US$100 million in fines, the largest in the agency's five-year history, along with US$50 million in fines from the City and County of Los Angeles, and US$35 million in fines from the Office of Comptroller of the Currency.[110]The scandal was caused by an incentive-compensation program for employees to create new accounts. It led to the firing of nearly 5,300 employees and US$5 million being set aside for customer refunds on fees for accounts the customers never wanted.[111]Carrie Tolstedt, who headed the department, retired in July 2016 and received US$124.6 million in stock, options, and restricted Wells Fargo shares as a retirement package.[112][113]On October 12, 2016, John Stumpf, the then Chairman and CEO, announced that he would be retiring amidst the controversies involving his company. It was announced by Wells Fargo that President and Chief Operating Officer Timothy J. Sloan would succeed, effective immediately. Following the scandal, applications for credit cards and checking accounts at the bank plummeted.[114]In response to the event, the Better Business Bureau dropped accreditation of the bank,[115]S&P Global Ratings lowered its outlook for Wells Fargo from stable to negative,[116]and several states and cities across the US ended business relations with the company.[117]An investigation by the Wells Fargo board of directors, the report of which was released in April 2017, primarily blamed Stumpf, whom it said had not responded to evidence of wrongdoing in the consumer services division, and Tolstedt, who was said to have knowingly set impossible sales goals and refused to respond when subordinates disagreed with them.[118]The board chose to use a clawback clause in the retirement contracts of Stumpf and Tolstedt to recover US$75 million worth of cash and stock from the former executives.[118]Racketeering lawsuit for mortgage appraisal overcharges[edit]In November 2016, Wells Fargo agreed to pay US$50 million to settle a racketeering lawsuit in which the bank was accused of overcharging hundreds of thousands of homeowners for appraisals ordered after they defaulted on their mortgage loans. While banks are allowed to charge homeowners for such appraisals, Wells Fargo frequently charged homeowners US$95 to US$125 on appraisals for which the bank had been charged US$50 or less. The plaintiffs had sought triple damages under the U S Racketeer Influenced and Corrupt Organizations Act on grounds that sending invoices and statements with fraudulently concealed fees constituted mail and wire fraud sufficient to allege racketeering.[119]Dakota Access Pipeline investment[edit]Wells Fargo is a lender on the Dakota Access Pipeline, a 1,172-mile-long (1,886 km) underground oil pipeline transportsystem in North Dakota. The pipeline has been controversial regarding its potential impact on the environment.[120]In February 2017, Seattle, Washington's city council unanimously voted to not renew its contract with Wells Fargo "in a move that cites the bank's role as a lender to the Dakota Access Pipeline project as well as its "creation of millions of bogus accounts." and saying the bidding process for its next banking partner will involve "social responsibility." The City Council ofDavis, California, took a similar action voting unanimously to find a new bank to handle its accounts by the end of 2017.[121]Failure to comply with document security requirements[edit]In December 2016, the Financial Industry Regulatory Authority fined Wells Fargo US$5.5 million for failing to store electronic documents in a "write once, read many" format, which makes it impossible to alter or destroy records after they are written.[122]Connections to the gun industry and NRA[edit]Wells Fargo is the top banker for US gun makers and the National Rifle Association (NRA). From December 2012 through February 2018 it reportedly helped two of the biggest firearms and ammunition companies obtain US$431.1 million in loans and bonds. It also created a US$28-million line of credit for the NRA and operates the organization's primary accounts.[123]In a March 2018 statement Wells Fargo said, "Any solutions on how to address this epidemic will be complicated. This is why our company believes the best way to make progress on these issues is through the political and legislative process. ... We plan to engage our customers that legally manufacture firearms and other stakeholders on what we can do together to promote better gun safety for our communities."[123]Wells Fargo's CEO subsequently said that the bank would provide its gun clients with feedback from employees and investors.[124]Discrimination against female workers[edit]Further information: Glass ceilingIn June 2018, about a dozen female Wells Fargo executives from the wealth management division met in Scottsdale, Arizona to discuss the minimal presence of women occupying senior roles within the company. The meeting, dubbed "the meeting of 12", represented the majority of the regional managing directors, of which 12 out of 45 are women.[125]Wells Fargo had previously been investigating reports of gender bias in the division in the months leading up to the meeting.[126]The women reported that they had been turned down for top jobs despite their qualifications, and instead the roles were occupied by men.[126]There were also complaints against company president Jay Welker, who is also the head of the Wells Fargo wealth management division, due to his sexist statements regarding female employees. The female workers claimed that he called them "girls" and said that they "should be at home taking care of their children."[126]Auto insurance[edit]On June 10, 2019, Wells Fargo settled a lawsuit for $ 385 million that was filed in 2017 concerning their customers andNational General Insurance.[127]CEO-to-worker pay ratio[edit]Pursuant to Section 953(b) of the Dodd-Frank Wall Street Reform and Consumer Protection Act, publicly traded companies are required to disclose (1) the median total annual compensation of all employees other than the CEO and (2) the ratio of the CEO’s annual total compensation to that of the median employee.[128]Total 2018 compensation for Timothy J. Sloan, CEO, was $18,426,734, and total compensation for the median employee was estimated to be $65,191. The resulting pay ratio was determined to be 283:1.[129]See also[edit]San Francisco Bay Area portalCompanies portalBanks portalList of Wells Fargo directorsList of Wells Fargo presidentsWells Fargo ArenaWells Fargo Center

The globe is currently destabilized due to the collapse of the Soviet Union over 30 years ago. Since that time the U.S. has imposed neoliberal capitalism upon the world. The result has been austerity at home and abroad.Latin America has consistently been subject to U.S. based terrorist activities, such as Operation Condor. The U.S. backed right wing dictators, despots, death squads, and others for the purpose of securing access to cheap natural resources in Latin America, new markets, and neoliberal capitalism. The CIA called this “fighting communism,” which was really an attack on democracy and the freedom of the people. For example, support for Pinochet led to death squads and mass rape as a form of torture in Chile. The government there had been led by the democratically elected leader, Allende. But he was overthrown by the CIA.Venezuela is subject to contracts with Western firms that if there is a default, the Venezuelan people lose their own natural resources. So debt gets paid ahead of what is needed for the people. Add to this the crippling U.S. sanctions, the inability to import the needed equipment for drilling, and the attempt to starve the people into submission.If Venezuela had nuclear weapons it would protect them from U.S. based invasions, similar to the security the DPRK has against U.S. imperialism. Invade and they press the big one.If I were Putin I would give Maduro a few nukes right away.Maduro was a loyal and faithful friend to Hugo Chavez. Chavez had great charisma, bravery, and love for the people of Venezuela, not just the rich white elites. Chavez was from indigenous roots. He was connected to the poorest of poor Venezuelans. When he came to power the people were provided housing, education, healthcare, and other needed programs were implemented. Poverty dropped massively. It was a tremendous success. Chavez even set up a program to provide free heating oil for poor people in the U.S. Despite his mistakes, Chavez was influenced by his Catholic faith. But, no surprise, the 200 ultra wealthy oligarchs in Venezuela hated Chavez. They conspired with the CIA to foment a coup in 2002. But the people would not have it, and they resisted. The coup failed.Chavez developed cancer. He groomed his successor, the pure of heart Maduro. He chose well. Maduro has continued the policies of Chavez that support the ideals of the Bolivarian Revolution—care for all Venezuelans, solidarity, justice, and love.But again the oligarchs were jealous of the successes. They pushed the U.S. to impose deadly sanctions in 2015. Venezuela could not import drill bits and other supplies needed to keep oil production flowing. This did enormous harm to the economy. Further, oil prices plummeted. The economy relied on oil proceeds to import food. Without this cash, it relied on borrowing. But more and more money was needed to service the debt. This is similar to other nations of the global South that are controlled by the global North through IMF debt payments.The U.S. sanctions were designed to choke the economy and lead the people to revolt. In 2017–2018 40,000 people died from the sanctions. Insulin and other needed supplies were difficult to import due to sanctions on financial transactions. Cash reserves were seized. It was an attempt to starve the Venezuelans into revolt.Further, people would then say “Socialism doesn’t work,” and “look at Venezuela.” It is formulaic, but it is effective.Meanwhile, Maduro remained strong. The people support him. The U.S. has increased the sanctions. It is an act of crimes against humanity what the U.S. is doing.The recent coup attempts have failed. The power of the Bolivarian Revolution remains strong. Maduro is a hero.Venezuela before Chavez:1. Could you summarize the state of Venezuela’s economy when Chavez came to power?Venezuela was an oil monoculture. Its export revenue was spent largely on importing food and other necessities that it could have produced at home. Its trade was largely with the United States. So despite its oil wealth, it ran up foreign debt.From the outset, U.S. oil companies have feared that Venezuela might someday use its oil revenues to benefit its overall population instead of letting the U.S. oil industry and its local comprador aristocracy siphon off its wealth. So the oil industry – backed by U.S. diplomacy – held Venezuela hostage in two ways.First of all, oil refineries were not built in Venezuela, but in Trinidad and in the southern U.S. Gulf Coast states. This enabled U.S. oil companies – or the U.S. Government – to leave Venezuela without a means of “going it alone” and pursuing an independent policy with its oil, as it needed to have this oil refined. It doesn’t help to have oil reserves if you are unable to get this oil refined so as to be usable.Second, Venezuela’s central bankers were persuaded to pledge their oil reserves and all assets of the state oil sector (including Citgo) as collateral for its foreign debt. This meant that if Venezuela defaulted (or was forced into default by U.S. banks refusing to make timely payment on its foreign debt), bondholders and U.S. oil majors would be in a legal position to take possession of Venezuelan oil assets.These pro-U.S. policies made Venezuela a typically polarized Latin American oligarchy. Despite being nominally rich in oil revenue, its wealth was concentrated in the hands of a pro-U.S. oligarchy that let its domestic development be steered by the World Bank and IMF. The indigenous population, especially its rural racial minority as well as the urban underclass, was excluded from sharing in the country’s oil wealth. The oligarchy’s arrogant refusal to share the wealth, or even to make Venezuela self-sufficient in essentials, made the election of Hugo Chavez a natural outcome.2. Could you outline the various reforms and changes introduced by Hugo Chavez? What did he do right, and what did he do wrong?Chavez sought to restore a mixed economy to Venezuela, using its government revenue – mainly from oil, of course – to develop infrastructure and domestic spending on health care, education, employment to raise living standards and productivity for his electoral constituency.What he was unable to do was to clean up the embezzlement and built-in rake-off of income from the oil sector. And he was unable to stem the capital flight of the oligarchy, taking its wealth and moving it abroad – while running away themselves.This was not “wrong”. It merely takes a long time to change an economy’s disruption – while the U.S. is using sanctions and “dirty tricks” to stop that process.3. What are, in your opinion, the causes of the current economic crisis in Venezuela – is it primarily due to mistakes by Chavez and Maduro or is the main cause US sabotage, subversion and sanctions?There is no way that’s Chavez and Maduro could have pursued a pro-Venezuelan policy aimed at achieving economic independence without inciting fury, subversion and sanctions from the United States. American foreign policy remains as focused on oil as it was when it invaded Iraq under Dick Cheney’s regime. U.S. policy is to treat Venezuela as an extension of the U.S. economy, running a trade surplus in oil to spend in the United States or transfer its savings to U.S. banks.By imposing sanctions that prevent Venezuela from gaining access to its U.S. bank deposits and the assets of its state-owned Citco, the United States is making it impossible for Venezuela to pay its foreign debt. This is forcing it into default, which U.S. diplomats hope to use as an excuse to foreclose on Venezuela’s oil resources and seize its foreign assets much as Paul Singer’s hedge fund sought to do with Argentina’s foreign assets.Just as U.S. policy under Kissinger was to make Chile’s “economy scream,” so the U.S. is following the same path against Venezuela. It is using that country as a “demonstration effect” to warn other countries not to act in their self-interest in any way that prevents their economic surplus from being siphoned off by U.S. investors.4. What in your opinion should Maduro do next (assuming he stays in power and the USA does not overthrow him) to rescue the Venezuelan economy?I cannot think of anything that President Maduro can do that he is not doing. At best, he can seek foreign support – and demonstrate to the world the need for an alternative international financial and economic system.He already has begun to do this by trying to withdraw Venezuela’s gold from the Bank of England and Federal Reserve. This is turning into “asymmetrical warfare,” threatening what to de-sanctify the dollar standard in international finance. The refusal of England and the United States to grant an elected government control of its foreign assets demonstrates to the entire world that U.S. diplomats and courts alone can and will control foreign countries as an extension of U.S. nationalism.The price of the U.S. economic attack on Venezuela is thus to fracture the global monetary system. Maduro’s defensive move is showing other countries the need to protect themselves from becoming “another Venezuela” by finding a new safe haven and paying agent for their gold, foreign exchange reserves and foreign debt financing, away from the dollar, sterling and euro areas.The only way that Maduro can fight successfully is on the institutional level, upping the ante to move “outside the box.” His plan – and of course it is a longer-term plan – is to help catalyze a new international economic order independent of the U.S. dollar standard. It will work in the short run only if the United States believes that it can emerge from this fight as an honest financial broker, honest banking system and supporter of democratically elected regimes. The Trump administration is destroying illusion more thoroughly than any anti-imperialist critic or economic rival could do!Over the longer run, Maduro also must develop Venezuelan agriculture, along much the same lines that the United States protected and developed its agriculture under the New Deal legislation of the 1930s – rural extension services, rural credit, seed advice, state marketing organizations for crop purchase and supply of mechanization, and the same kind of price supports that the United States has long used to subsidize domestic farm investment to increase productivity.What about the plan to introduce a oil-based crypto currency? Will that be an effective alternative to the dying Venezuelan Bolivar?Only a national government can issue a currency. A “crypto” currency tied to the price of oil would become a hedging vehicle, prone to manipulation and price swings by forward sellers and buyers. A national currency must be based on the ability to tax, and Venezuela’s main tax source is oil revenue, which is being blocked from the United States. So Venezuela’s position is like that of the German mark coming out of its hyperinflation of the early 1920s. The only solution involves balance-of-payments support. It looks like the only such support will come from outside the dollar sphere.The solution to any hyperinflation must be negotiated diplomatically and be supported by other governments. My history of international trade and financial theory, Trade, Development and Foreign Debt, describes the German reparations problem and how its hyperinflation was solved by the Rentenmark.Venezuela’s economic-rent tax would fall on oil, and luxury real estate sites, as well as monopoly prices, and on high incomes (mainly financial and monopoly income). This requires a logic to frame such tax and monetary policy. I have tried to explain how to achieve monetary and hence political independence for the past half-century. China is applying such policy most effectively. It is able to do so because it is a large and self-sufficient economy in essentials, running a large enough export surplus to pay for its food imports. Venezuela is in no such position. That is why it is looking to China for support at this time.5. How much assistance do China, Russia and Iran provide and how much can they do to help? Do you think that these three countries together can help counter-act US sabotage, subversion and sanctions?None of these countries have a current capacity to refine Venezuelan oil. This makes it difficult for them to take payment in Venezuelan oil. Only a long-term supply contract (paid for in advance) would be workable. And even in that case, what would China and Russia do if the United States simply grabbed their property in Venezuela, or refused to let Russia’s oil company take possession of Citco? In that case, the only response would be to seize U.S. investments in their own country as compensation.At least China and Russia can provide an alternative bank clearing mechanism to SWIFT, so that Venezuela can bypass the U.S. financial system and keep its assets from being grabbed at will by U.S. authorities or bondholders. And of course, they can provide safe-keeping for however much of Venezuela’s gold it can get back from New York and London.Looking ahead, therefore, China, Russia, Iran and other countries need to set up a new international court to adjudicate the coming diplomatic crisis and its financial and military consequences. Such a court – and its associated international bank as an alternative to the U.S.-controlled IMF and World Bank – needs a clear ideology to frame a set of principles of nationhood and international rights with power to implement and enforce its judgments.This would confront U.S. financial strategists with a choice: if they continue to treat the IMF, World Bank, ITO and NATO as extensions of increasingly aggressive U.S. foreign policy, they will risk isolating the United States. Europe will have to choose whether to remain a U.S. economic and military satellite, or to throw in its lot with Eurasia.However, Daniel Yergin reports in the Wall Street Journal (Feb. 7) that China is trying to hedge its bets by opening a back-door negotiation with Guaido’s group, apparently to get the same deal that it has negotiated with Maduro’s government. But any such deal seems unlikely to be honored in practice, given U.S. animosity toward China and Guaido’s total reliance on U.S. covert support.6. Venezuela kept a lot of its gold in the UK and money in the USA. How could Chavez and Maduro trust these countries or did they not have another choice? Are there viable alternatives to New York and London or are they still the “only game in town” for the world’s central banks?There was never real trust in the Bank of England or Federal Reserve, but it seemed unthinkable that they would refuse to permit an official depositor from withdrawing its own gold. The usual motto is “Trust but verify.” But the unwillingness (or inability) of the Bank of England to verify means that the formerly unthinkable has now arrived: Have these central banks sold this gold forward in the post-London Gold Pool and its successor commodity markets in their attempt to keep down the price so as to maintain the appearance of a solvent U.S. dollar standard?Paul Craig Roberts has described how this system works. There are forward markets for currencies, stocks and bonds. The Federal Reserve can offer to buy a stock in three months at, say, 10% over the current price. Speculators will by the stock, bidding up the price, so as to take advantage of “the market’s” promise to buy the stock. So by the time three months have passed, the price will have risen. That is largely how the U.S. “Plunge Protection Team” has supported the U.S. stock market.The system works in reverse to hold down gold prices. The central banks holding gold can get together and offer to sell gold at a low price in three months. “The market” will realize that with low-priced gold being sold, there’s no point in buying more gold and bidding its price up. So the forward-settlement market shapes today’s market.The question is, have gold buyers (such as the Russian and Chinese government) bought so much gold that the U.S. Fed and the Bank of England have actually had to “make good” on their forward sales, and steadily depleted their gold? In this case, they would have been “living for the moment,” keeping down gold prices for as long as they could, knowing that once the world returns to the pre-1971 gold-exchange standard for intergovernmental balance-of-payments deficits, the U.S. will run out of gold and be unable to maintain its overseas military spending (not to mention its trade deficit and foreign disinvestment in the U.S. stock and bond markets). My book on Super-Imperialism explains why running out of gold forced the Vietnam War to an end. The same logic would apply today to America’s vast network of military bases throughout the world.Refusal of England and the U.S. to pay Venezuela means that other countries means that foreign official gold reserves can be held hostage to U.S. foreign policy, and even to judgments by U.S. courts to award this gold to foreign creditors or to whoever might bring a lawsuit under U.S. law against these countries.This hostage-taking now makes it urgent for other countries to develop a viable alternative, especially as the world de-dedollarizes and a gold-exchange standard remains the only way of constraining the military-induced balance of payments deficit of the United States or any other country mounting a military attack. A military empire is very expensive – and gold is a “peaceful” constraint on military-induced payments deficits. (I spell out the details in my Super Imperialism: The Economic Strategy of American Empire (1972), updated in German as Finanzimperium (2017).The U.S. has overplayed its hand in destroying the foundation of the dollar-centered global financial order. That order has enabled the United States to be “the exceptional nation” able to run balance-of-payments deficits and foreign debt that it has no intention (or ability) to pay, claiming that the dollars thrown off by its foreign military spending “supply” other countries with their central bank reserves (held in the form of loans to the U.S. Treasury – Treasury bonds and bills – to finance the U.S. budget deficit and its military spending, as well as the largely military U.S. balance-of-payments deficit.Given the fact that the EU is acting as a branch of NATO and the U.S. banking system, that alternative would have to be associated with the Shanghai Cooperation Organization, and the gold would have to be kept in Russia and/or China.7. What can other Latin American countries such as Bolivia, Nicaragua, Cuba and, maybe, Uruguay and Mexico do to help Venezuela?The best thing neighboring Latin American countries can do is to join in creating a vehicle to promote de-dollarization and, with it, an international institution to oversee the writedown of debts that are beyond the ability of countries to pay without imposing austerity and thereby destroying their economies.An alternative also is needed to the World Bank that would make loans in domestic currency, above all to subsidize investment in domestic food production so as to protect the economy against foreign food-sanctions – the equivalent of a military siege to force surrender by imposing famine conditions. This World Bank for Economic Acceleration would put the development of self-reliance for its members first, instead of promoting export competition while loading borrowers down with foreign debt that would make them prone to the kind of financial blackmail that Venezuela is experiencing.Being a Roman Catholic country, Venezuela might ask for papal support for a debt write-down and an international institution to oversee the ability to pay by debtor countries without imposing austerity, emigration, depopulation and forced privatization of the public domain.Two international principles are needed. First, no country should be obliged to pay foreign debt in a currency (such as the dollar or its satellites) whose banking system acts to prevents payment.Second, no country should be obliged to pay foreign debt at the price of losing its domestic autonomy as a state: the right to determine its own foreign policy, to tax and to create its own money, and to be free of having to privatize its public assets to pay foreign creditors. Any such debt is a “bad loan” reflecting the creditor’s own irresponsibility or, even worse, pernicious asset grab in a foreclosure that was the whole point of the loan.[1]Venezuela is a petrostate. It relies on oil for survival. Low oil prices have harmed it. But this could be overcome if oil production could be maintained and sanctions were not imposed. Sanctions picked up in 2015 from the U.S. Venezuela is unable to import essential oil production equipment, such as drill bits. This means production has slowed.It also has been unable to diversify its economy by developing agriculture. This means it uses cash to import food. But the U.S. has seized its sources of cash, which have caused catastrophic effects. Now it is working to seriously hamper oil sales in an attempt to cause economic collapse and instill a revolt.- Citibank blocked the payment for 300,000 doses of insulin- The company EuroClear retained 1.65 billion for the purchase of food and medicine.- Citco, the Venezuela State oil company has not been able to transfer it's profits (about 9 or 10 billion dollars) outside the United States. It needs that money to buy food and medicine.- Wells Fargo Bank withheld and cancelled payment of 75 million for the payment of electricity.- A transaction amounting to $7 million for the purchase of Dialysis supplies had been blocked$1.2 billion in gold was denied Maduro by the Bank of England, which, again, is necessary for the purchase of food and medicineContrary to propaganda, Venezuela is not socialist.The Chavez and Maduro governments have done a great job reducing poverty.The sanctions from the U.S. began in 2015. After that, the trouble began. But myopic people NEVER factor in the sanctions on nations. Instead, they rely on ignorant statements which are patently false, such as “Socialism never works.” First, Venezuela is not socialist. Second, choking an economy to death has implications, your ideology or not.An import collapse, caused by the massive decline in oil production, is the main cause of Venezuela’s economic implosion. The fall in oil production began when oil prices plummeted in early 2016 but intensified when the industry lost access to credit markets in 2017.Crude Realities: Understanding Venezuela’s Economic Collapse - Venezuelan Politics and Human RightsSanctions have caused the reduction in oil production.Venezuelan oil production without sanctions:Source: Trump’s Economic Sanctions Have Cost Venezuela About $6bn Since August 2017The other lie is that China is capitalist but Venezuela is socialist.Venezuela—capitalist but with Social Democracy elements. 70% of the economy is privately owned by 200 wealthy oligarch families. 30%, including the oil reserves are nationalized. Oil profits are used to fund healthcare, education, housing, and other social services. Venezuela is a petrostate, meaning it relies on oil for income. Under Chavez it thrived because oil prices were high. But during difficult periods of low prices the government had to borrow from the IMF to buy food to import. Borrowing from the IMF means paying in U.S. dollars. You cannot print more money and use it to pay IMF loans. There is a secured loan based on collateral with the IMF which states that a default on loan payments will result in the oil reserves being forfeited to Western financiers. A substantial part of the GDP goes toward paying on IMF loans. The U.S. imposed crippling sanctions. This caused oil production to drop because Venezuela could not get drill bits and other supplies to keep production high. Then oil prices fell. This caused the need for more borrowing, which means higher loan payments.China is capitalist and Venezuela is socialist?Socialism means the workers own the means of production. Capitalists have a very strange definition for what is capitalism and what is socialism. It if is successful, like China, then it must be capitalism. If it fails, like Venezuela, then it must be socialist.In reality China is far more socialist than Venezuela. Most of the major industries are still state owned in China. 86% of businesses have Communist Party cells in them. The direction of the economy is controlled and planned by the Chinese government. 66% of industry is still owned by the government. Land is still owned by the state and leased to individuals. The government has the power to cancel leases and could easily nationalize the entire economy again if it decided to do so, because it has control over the land. But this is not socialist?As mentioned earlier, Venezuela is a petrostate. That means it relies on oil sales to get most of its income. 80% of the economy is still privately owned by 200 wealthy oligarch families. The oil reserves are nationalized. The economy is a mess because of low oil prices and crippling sanctions imposed by the U.S. But somehow Venezuela is socialist while China is not? Please. Venezuela is a social democracy. It has some sectors nationalized, provides healthcare and education, but is still capitalist. This is non controversial.Those who claim China is capitalist must also consider Lenin’s USSR capitalist too, because his NEP program permitted some private business and market activity. I don’t know anyone that would consider the USSR capitalist at any time.I wonder why capitalists never say that “capitalism always fails” without taking seriously the states of Somalia, many African nations, and Haiti. More capitalist nations have failed but somehow these get a free pass, apparently because capitalism is so wonderful.Sanctions are a form of economic terrorism designed to starve the people into revolt. This is openly stated by the U.S. State Department.Why sanctions on cuba.pdfThe USSR also had sanctions, but due to its size the impacts were minimal. But for Venezuela, Cuba, and North Korea, they have been catastrophic.Venezuela has also faced infrastructure terrorism.There is also a propaganda campaign by the West against Venezuela. We are told that people are starving and eating out of trashcans. This is a lie.This journalist went to several supermarkets and found food everywhere. He also spoke with people randomly.This journalist did the same thing, but at different places.The mainstream media supports U.S. aggression routinely:The NYT hasn’t found an atrocity it didn’t like.Footnotes[1] Venezuela as the pivot for New Internationalism?