The third biggest bank in the United States by assets Wells Fargo (NYSE:WFC) has decided to merge their international business with the wholesale banking segment, which looks after corporate clients. They have disclosed their restricting plans as well. Richard Yorke, who was heading Wells Fargo’s international group, will now be the CEO of their wholesale banking business.
International Business of Wells Fargo Was Too Small
The international business of Wells Fargo was acquired from Wachovia at the beginning of 2009, and it was only after this that they really started building their international business. But the unit has always been small. International operations have given Wells Fargo just 4 percent of their revenues, which is much less than their business rivals such as Bank of America, Citigroup (NYSE:C), and JPMorgan Chase.
In fact, the San Francisco-based banking and financial services holding company even said sometime back that the division needs special attention as it was so small. But gradually it was growing particularly after the acquisitions from General Electric last year. Wells Fargo now operates in 42 countries. There are 3000 staff workers in the UK, elsewhere in Europe, and the Asia-Pacific.
The international group has been serving large financial institutions, corporate clients, and also the middle market, offering them a range of solutions that includes credit, payments, treasury management, foreign exchange, trade services, and financing.
Perry Pelos, who heads the group’s wholesale banking and is the senior vice president, issued this statement after the announcement was made, “As more of our customers do business globally, our international capabilities and expertise have evolved and become increasingly important to their success. We remain committed to serving the global needs of our customers and want our international services to be well integrated into the business lines that serve them”.
Interim Position for Yorke Before He Becomes the CEO
However, before Richard Yorke assumes the new position, he will be heading a team of executives to help the business plan for a possible bankruptcy. That will be an interim position. It was also decided that Scott Zaret from the risk division of Wells Fargo (NYSE:WFC) will have a permanent position in the team.
Jon Weiss will remain the head of securities. Foreign exchange will report to him. Global Trade Services will become a part of Middle Market Banking, and International Treasury Management, which now is a part of the Payments, Virtual Solutions and Innovation group will now be a part of Wells Fargo Treasury Management.