Wells Fargo 'to close 122 branches'

2 December 2009

Wells Fargo is to close 101 Californian branches formerly owned by Wachovia, as well as shutting 21 of its own outlets in the state.

The bank bought Wachovia in 2008 as it was threatened by collapse due to toxic mortgage loans.

California is the only state in which the two financial institutions have significantly overlapping operations, resulting in the decision by Wells Fargo to close down Wachovia branches near their franchises, reports the Los Angeles Times.

The move is set to go through in April and will also see the 86 surviving Wachovia branches being rebranded under the Wells Fargo name.

Despite the downsizing, the bank will still have more than 1,000 branches in California and the employees whose offices are due to close will be re-employed elsewhere by the organization.

In its third-quarter report, Wells Fargo revealed that its net income was $9.5 billion in the first nine months of the year, up 75 per cent on the same period in 2008.

By Gary Cooper

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