Resolution Plan Public Summary - Wells Fargo & Company Wells Fargo Bank, NA - Wells Fargo Bank Logo Together we'll go far
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
Wells Fargo & Company
Wells Fargo Bank, NA.
Resolution Plan
Public Summary
July 1, 2013
Wells Fargo Bank Logo Together we'll go far
Table of Contents
Table of Contents
Introduction
Summary of page 2page 1Plan
Resolution page 4 page
A.The Names
B.Description
C.Summary of
of Material
Core
Financial Entities
Business
Information page
Lines 4 6 Assets,
Regarding
Liabilities,
D.Description
E.MembershipsCapital,
of and Major
Derivative
in Material andFunding
Hedging
Payment, Sources pagepage
Activities
Clearing, 9 14 Systems page 16
F.Description
G.Material
H.Principal of Foreign
Supervisory
Officers page Operations
Authorities
22 page
page 20 and Settlement
21
I.Resolution
J.Description Planning
K.High-levelpage Corporate
of Material
Description Governance
Management
of Resolution Structure
Information
Strategy and Processes
Systems
page 26 page 24 page 23
Conclusion 27
Introduction
To promote financial stability, section 165(d) of the Dodd-Frank Wall Street Reform and Consumer
Protection Act (the "Dodd-Frank Act") and the related rule (the "Title I Rule")
(Footnote 1. Board of Governors of the Federal Reserve System and
Federal Deposit Insurance Corporation, Resolution Plans Required, 76 Fed. Reg.
67323 (Nov. 1, 2011), as codified at 12 CFR Part 243. End footnote.) require each bank holding
company with consolidated assets in excess of $50 billion to periodically submit to the Board of
Governors of the Federal Reserve System (the "Federal Reserve") and the Federal Deposit Insurance
Corporation (the "FDIC") a plan for that company's rapid and orderly resolution in the event of material
financial distress or failure.
(Footnote 2. Under the Title I Rule, each "covered company,"
including non-bank financial companies supervised by the Federal Reserve, U.S. bank
holding companies and certain foreign banks and bank holding companies,
with assets exceeding the $50 billion threshold is required to
submitaresolutionplan.Endfootnote.)WellsFargo & Company (the "Parent")
is a bank holding company registered
with the Federal Reserve with consolidated assets in excess of $50 billion. Therefore, the Parent is
required to submit a resolution plan under the Dodd-Frank Act and the Title I Rule.
In addition, to ensure that depositors receive prompt access to their insured deposits in the event of an
insured depository institution's (an "IDI") failure and to enable the FDIC to perform its resolution
functions most efficiently, the FDIC has adopted a separate rule (the "IDI Rule", and together with the
Title I Rule, the "Rules") requiring each IDI with $50 billion or more in total assets to periodically submit
a resolution plan to the FDIC.
(Footnote 3. Federal Deposit Insurance Corporation, Resolution Plans Required
for Insured Depository Institutions with $50 billion or more in Total
Assets, 77 Fed. Reg. 3075 (Jan. 23, 2012), as codified at 12 CFR Part 360.10. End footnote.)
Wells Fargo Bank, N.A. ("WFBNA"), an IDI with more than $50 billion in
total assets, is therefore required to submit a resolution plan under the IDI Rule.
(Footnote 4. WFBNA is a covered insured depository institution ("CIDI")
under the IDI Rule. A CIDI is an IDI with $50 billion or more in total assets. End footnote.)
In light of WFBNA's importance to the Parent, and to ensure a coordinated approach to resolution
planning for the Parent and its consolidated subsidiaries (collectively, the "Company" or "Wells Fargo"),
the Parent and WFBNA are submitting one joint resolution plan (the "Resolution Plan") to satisfy both of
the Rules.
In the unlikely event of material financial distress or failure, the Resolution Plan provides for the
resolution of the Company and its material entities (defined below), in a rapid and orderly way, without
posing systemic risk to the larger financial system and without the need for any government or taxpayer
support. The Resolution Plan is a road map to facilitate the orderly resolution of Wells Fargo upon the
failure of its material entities under applicable insolvency regimes. These include receivership under the
Federal Deposit Insurance Act, as amended (the "FDIA"), reorganization or liquidation under the United
States Bankruptcy
Introduction
Code (the "Bankruptcy Code"), and liquidation under the Securities Investor Protection Act of 1970
("SIPA") under the authority of a trustee appointed by the Securities Investor Protection Corporation
("SIPC").
In conformance with the Rules and guidance provided by the Federal Reserve and the FDIC, the
Resolution Plan assumes an idiosyncratic material financial event that affects the Company under
economic conditions consistent with the Federal Reserve Supervisory Baseline Scenario published on
November 15, 2012. The Resolution Plan further assumes that there is no disruption to the capital
markets, other market participants are functioning normally and the Company has not taken any steps to
enhance its capital or liquidity position.
Unless otherwise indicated, information in this Public Summary is provided as of December 31, 2012.
The Company
Wells Fargo is a nationwide, diversified, community-based financial services company with $1.42 trillion
in assets. Founded in 1852 and headquartered in San Francisco, the Company provides banking,
insurance, investments, mortgage, and consumer and commercial finance to its customers. With more
than 265,000 active, full-time equivalent team members, the Company serves one in three households in
the United States. The Company's vision is to satisfy all of its customers' financial needs, help them
succeed financially, be recognized as the premier financial services company in its markets and be one of
America's great companies. The Company's primary strategy to achieve this vision is to increase the
number of products its customers utilize and to offer them all of the financial products that fulfill their
needs. Wells Fargo's cross-sell strategy, diversified business model and the breadth of its geographic
reach facilitate growth in both strong and weak economic cycles, enabling the Company to grow by
expanding the number of products customers have, gain new customers in extended markets, and
increase market share in many businesses.
Wells Fargo's primary subsidiary is WFBNA, a national bank with total assets of $1.27 trillion. WFBNA
operates its banking businesses through approximately 6,200 traditional stores (branches),
approximately 1,600 mortgage and wholesale banking stores, and more than 12,000 ATMs located in all
50 states and the District of Columbia.
Summary of Resolution Plan
A. The Names of Material Entities
For purposes of resolution planning, the Company has identified eight "material entities" under the Title I
Rule. A material entity under the Title I Rule is any subsidiary that is significant to the activities of a
critical operation
(Footnote 5. Under the Title I Rule, "critical operations" are those operations,
including associated services, functions and support, the failure or
discontinuance of which, in the view of the covered company or as jointly directed by the
Federal Reserve and the FDIC, would pose a threat
tothefinancialstabilityoftheUnitedStates.Endfootnote.)orcore business line
(as defined below) of a covered company. The Company has also
identified four material entities as defined under the IDI Rule. A material entity under the IDI Rule is a
company that is significant to the activities of a critical service
(Footnote 6. Under the IDI Rule, "critical services" means services and operations of the CIDI,
such as servicing information technology support and
operations, human resources and personnel, that are necessary to continue the day-to-
day operations of the CIDI.. End footnote.)
or core business line (as defined below) of
a CIDI. The Resolution Plan addresses strategies that could be useful in ensuring the orderly resolution of
each material entity in the event of material financial distress or failure. The material entities are:
Wells Fargo & Company is the ultimate parent in the Company's organizational structure. Its
shares are publicly traded on the New York Stock Exchange ("NYSE"). The Parent is a financial
holding company and a bank holding company under the Bank Holding Company Act, as
amended (the "BHCA"). It is the "covered company" under the Title I Rule and a material entity
under the IDI Rule;
WFBNA is a national banking association. It represents nearly 90% of the Company's
consolidated assets and contributes the majority of the Company's consolidated revenues and net
earnings. WFBNA is involved with all of the Company's critical operations, either directly or
through one or more of its subsidiaries, and the majority of the Company's core business lines.
WFBNA is a material entity under the Title I Rule and is the CIDI under the IDI Rule;
Wells Fargo Securities, LLC ("WFS LLC") is registered with the U.S. Securities and Exchange
Commission ("SEC") as a broker-dealer. WFS LLC provides securities, investment banking and
capital markets products and services to mid-market, large and Fortune 500 companies and
investment products to institutional investors. WFS LLC is a material entity only under the Title I
Rule;
Wells Fargo Advisors, LLC ("WFA LLC") is registered with the SEC as both a broker-dealer and an
investment advisor. WFA LLC provides a full range of investing services and products, primarily
to retail customers and small businesses in all 50 states and the District of Columbia. WFA LLC is
a material entity under both the Title I Rule and the IDI Rule;
Summary of Resolution Plan
First Clearing, LLC ("First Clearing"), a wholly-owned subsidiary of WFA LLC, provides
securities-execution and brokerage-clearance services to WFA LLC and other affiliated and
unaffiliated retail broker-dealers throughout the United States. First Clearing is registered as a
broker-dealer with the SEC. First Clearing is a material entity under both the Title I Rule and the
IDI Rule;
Wells Fargo Funds Management, LLC ("WFFM") is an advisory firm registered with the SEC as an
investment advisor. Among other things, WFFM serves as investment advisor for the Wells Fargo
Advantage Funds (the "WF Advantage Funds"). WFFM is a material entity only under the Title I
Rule;
Wells Capital Management Incorporated ("Wells Cap") is an advisory firm registered with the
SEC as an investment advisor. Wells Cap is a wholly-owned subsidiary of WFBNA and serves as
sub-advisor to a number of mutual funds, including many of the WF Advantage Funds. Wells Cap
is a material entity only under the Title I Rule; and
Galliard Capital Management, Inc. ("Galliard Capital") is an advisory firm registered with the SEC
as an investment advisor. Galliard Capital is a wholly-owned subsidiary of WFBNA and is an
advisory boutique that provides investment advisory services to institutional investors. Galliard
Capital is a material entity only under the Title I Rule.
Summary of Resolution Plan
B. Description of Core Business Lines
For purposes of the Title I Rule, "core business lines" are those business lines of the covered company,
including associated operations, services, functions and support that upon failure would result in a
material loss of revenue, profit or franchise value. The Company has identified five core business lines
under the Title I Rule. The chart below displays the five core business lines, together with their applicable
core products andservices.(Footnote7.Corebusinesslineshavebeenidentified
solely for resolution planning purposes and may differ from the operating segments that the
Figure B-1 Core Business Lines
Company uses for management reporting in its periodic reports filed with the SEC..End footnote)
Heading
Community
managementrowBanking:Retail
column 1 Community
of savings
transaction Checking
banking Banking column
and Savings
facilities, 2:Description
Description:The
including check, debitend heading
offering
card, and row
ATM, asand
private wellsmall
as
Description:Internet, andclients.
business timeand
merchant deposits
Community
payrollonservices
behalf of personal,
Banking:Payment
for retail and Services
small
business
of methods
e-check clients
and(e.g., such as accepting
directbank
real-time debit, electronic
bank transfer,
transfer using payments through
online banking). a variety
Community Banking:Small
Description:Secured
lending facilities Business
and unsecured
for small business Lending
commercial
customers.
Heading
Consumer
customers row column
Credit
where an 1 Consumer
Solutions:Secured
advance isvia Credit
Retail
secured Solutions
withLending column 2:Description
Description:Lending
specified non-real end
to heading row
retail
estate collateral.
Consumer
Lines
Consumerof Credit
credit
Credit Solutions:Credit
made available Card
card
Solutions:Unsecured Description:
products.
Retail Lending Description:Lending to domestic
retailfacilities
The customers whereloans
include an advance is of
and lines notcredit.
secured.
Summary of Resolution Plan
Figure B-1 Core Business Lines - Continued
Heading
Wells
to personalrow
Fargo column
Home
and small 1business
Wells Fargo
Lending:Residential Home
customers, Lending
Mortgage
where an column Description:Lending
Lending
advance 2:Description
is secured by end
real heading row
products
estate.
Specific
lien
home activities
mortgage
equity include:
products
products, and the sale
through
the origination
correspondent
/ of first
distribution lien
channels,
of mortgages,
mortgagethe purchase
origination
products. of of first
second lien
Wells
and Fargoincluding
customers, Home of
administration Lending:Residential
residential
the collection mortgage
and Mortgage
loans onServicing
remittance ofbehalf ofDescription:The
principal internal and
and interest management
external
payments,
administration
production
the handling and
of of escrows
delivery
client of and payment
mortgage
inquiries, and of statements
loan property
foreclosure taxes
and
activities. and insurance
tax reports, premiums when due,
Heading
Wholesale row
international column
commercial 1 Wholesale
Banking:Commercial and Banking
Lending
corporate column 2:Description
Description:Debt
companies and end
facilities
financial heading
to domestic
institutions to row and
finance
non-real
income estate-related
Description:Debt
producing business
facilities
properties forand activity.
the purchase Wholesale
undeveloped andland. Banking:Commercial
financing of Real Estate
Wholesale
the
(i.e., Banking:Third-Party
administration
in connection of syndicated
with commercial Loan
loans Servicing
and Description:Processes
commercial
mortgage-backed mortgage
securities). masterassociated
servicingand with
Wholesale
international
cash Banking:Treasury
services
management, for
payments, Services
wholesale,
trade, Description:A
government
liquidity, and
lock-box, broad
municipalcategory of
clients domestic
that include:
nd information
Wholesale
trading tracking
Banking:Sales
activities and reporting
& Trading services.
Description:Securities and derivatives sales and
fixed-income
and currency andand
products, products
equity including:
securities,
and financial foreign interest rate
exchange
and physical products,
commodities.Summary of Resolution Plan
Figure B-1 Core Business Lines - Continued
Heading
Wholesale row column 1 institutions
Banking:Trade Wholesale
Finance Banking column 2:Description endclients
heading
androw
international
and
Wholesale
bearing
financial
facilitation ofsavings,
the import
Banking:Wholesale
demand, and
time, / Description:Services
involved
Deposits
high
with
orperformance
export improving
of goods. to domestic
the efficiency
Description:Non-interest
money market and interest
deposit products
as
andwell
term
Heading as domestic
maturities
row and
for international
commercial, currency
corporate,deposit placements
government and for overnight
international clients.
Wealth,
brokerage
and small andcolumn
Brokerage
business
1 Wealth,
otherand
financial
customers
Brokerage
Retirement:Retail
services
throughout
and Retirement
Brokerage
provided to retail
the United States.
column 2:Description
Description:Securities end heading row
advisory,
Under the IDI Rule, "core business lines" means those business lines of the CIDI, including associated
operations, services, functions and support that upon failure would result in a material loss of revenue,
profit or franchise value. WFBNA has determined that, with the exception of the Wealth, Brokerage and
Retirement core business line described above, each of the other four core business lines identified by the
Company as a core business line under the Title I Rule is also a core business line of WFBNA for purposes
of the IDI Rule.Summary of Resolution Plan
C. Summary Financial Information Regarding Assets, Liabilities, Capital,
and Major Funding Sources
For detailed financial information with respect to Wells Fargo, please refer to the Company's annual,
quarterly and current reports filed with the SEC and available on the SEC's website at www.sec.gov,
including the Annual Report on Form 10-K for the year ended December 31, 2012. The information below
regarding WFBNA is based on WFBNA's Consolidated Report of Condition and Income on FFIEC Form
031 for the year ended December 31, 2012, as filed with the FDIC, and is available on the FDIC's website
at www.fdic.gov.
Figure C-1 Balance Sheet for the Company and WFBNA
Heading
column
(in row column
3:Wells Fargo1
Millions):Assets:Cash(in
Bank,Millions)
and N.A column
due Consolidated
from banks 2:Wells Fargo
Balance
Wells Fargo & Company
Sheet
& Company
end headingConsolidated
row
Consolidated Balance Sheet:$
Balance Sheet 21,860
Wells
(in Fargoinvestments
short-term Bank, N.AWells
Consolidated
Millions):Assets:Federal funds &Balance
Fargosold, Sheet
securities
Company :$ 22,460
purchased
Consolidated under resale
Balance agreements and
Sheet:$137,313 other
Wells
(in
Wells Fargo
Fargo Bank,
Bank, N.A
N.A Consolidated
Millions):Assets:Trading assets
Consolidated Balance
Wells Fargo
Balance Sheet
&
Sheet :$131,827
Company
:$34,637 Consolidated Balance Sheet:$57,482
(in
(in Millions):Assets:Securities
Wells Fargo Bank, N.A available
Consolidated
Millions):Assets:Mortgages held for sale
Balance
for sale Wells
Sheet
Wells Fargo
:$203,661
Fargo & Company
& Company Consolidated
Consolidated Balance
Balance Sheet:$235,199
Sheet:$47,149
Wells
(in
Wells Fargo
Fargo Bank,
Bank, N.A
Millions):Assets:Loans
N.A Consolidated
held for
Consolidated Balance
sale Wells
Balance Sheet
Fargo
Sheet :$29,881
& Company
:$110 Consolidated Balance Sheet:$110
(in
(in Millions):Assets:Loans
Wells Fargo Bank, N.A Wells
Consolidated
Millions):Assets:Allowance Fargo & Company
Balance
for loan losses Sheet Consolidated
:$745,960
Wells:$(14,234)
Fargo Balance
& Company Sheet:$799,574
Consolidated Balance Sheet:$(17,060)
Wells
(in
Wells Fargo
Fargo Bank,
Bank, N.A
Millions):Assets:Net
N.A Consolidated
loans Wells
Consolidated Balance
Fargo
Balance Sheet
& Wells
Company
Sheet Consolidated
:$731,726 Balance Sheet:$782,514
(in
(in Millions):Assets:Mortgage
Wells Fargo Bank, N.A
Millions):Assets:Premises servicing
Consolidated
and right
Balance
equipment, Sheet
net Fargo & Company
:$12,930
Wells Fargo & Company Consolidated Balance
Consolidated Sheet:$12,698
Balance Sheet:$9,428
Wells
(in
Wells Fargo
Fargo Bank,
Bank, N.A
N.A Consolidated
Millions):Assets:Goodwill Wells
Consolidated Balance
Fargo
Balance Sheet
& Company
Sheet :$7,746
Consolidated
:$21,545 Balance Sheet:$25,637
(in
(in Millions):Assets:Other
Wells Fargo Bank, N.A
Millions):Assets:Total assets
Consolidated
assets Wells
Wells Fargo
Balance
Fargo && Company
Sheet :$69,602
Company Consolidated
Consolidated Balance
Balance Sheet:$93,578
Sheet:$1,422,968
Wells
(in Fargo Bank, N.A Consolidated
Millions):Liabilities:Non Fargo Balance
interest-bearing Sheet
deposits:$1,266,125
Wells
Balance
(in
Wells
(in
Sheet:$
Fargo 288,207
Bank, N.A Wells
Millions):Liabilities:Interest-bearing
Consolidated
Millions):Liabilities:Total deposits
Bank,
Balance
Wells
N.A
deposits
Sheet
Fargo & FargoFargo
Consolidated
Wells
:$739,207
Company
& Company
&Balance
Company Sheet
Consolidated
Consolidated
:$255,232
Consolidated
Balance Balance Sheet:$714,628
Sheet:$1,002,835
Wells
(in
Wells Fargo
Fargo Bank,
Bank, N.A
N.A Consolidated
Millions):Liabilities:Short-term
Consolidated Balance
borrowings
Balance Sheet
Wells
Sheet :$994,439
Fargo
:$40,806 & Company Consolidated Balance Sheet:$57,175
(in
(in Millions):Liabilities:Accrued
Wells Fargo & Company
Millions):Liabilities:Long-term expenses
Consolidated debt and Fargo
Balance
Wells other liabilities
Sheet:$76,668
& Company
Company Wells Fargo Bank,
Consolidated N.A Consolidated
Balance Balance Sheet :$51,379
Sheet:$127,379
Wells
(in
Wells Fargo
Fargo Bank,
Bank, N.A
N.A Consolidated
Millions):Liabilities:Total
Consolidated Balance
liabilities Wells
Balance Sheet
Fargo
Sheet :$44,768
&
:$1,131,392 Consolidated Balance Sheet:$1,264,057
(in Millions):Liabilities:Total
Wells Fargo stockholders' equity Wells Fargo & Company Consolidated Balance Sheet:$158,911
(in
Wells Fargo Bank,
Millions): Total N.A
Bank, N.A Consolidated
liabilities and equity
Consolidated Balance
WellsSheet
Balance Fargo:$134,733
Sheet & Company Consolidated Balance Sheet:$1,422,968
:$1,266,125Summary of Resolution Plan
Capital
Wells Fargo has an active program for managing stockholders' equity and regulatory capital, and
maintains a comprehensive process for assessing the Company's overall capital adequacy. Capital is
generated primarily through the retention of earnings (net of dividends). The objective is to maintain
capital at an amount commensurate with the Company's risk profile and risk tolerance objectives and to
meet both regulatory and market expectations. The Company's potential sources of stockholders' equity
include retained earnings and issuances of common and preferred stock.
Regulatory Capital
The Company and its subsidiary banks are subject to various regulatory capital adequacy requirements
administered by the Federal Reserve and the Office of the Comptroller of the Currency ("OCC"). Risk-
based capital ("RBC") guidelines establish risk-adjusted capital ratios relating capital to different
categories of assets and off-balance sheet exposures. Calculated capital ratios consist of Tier 1 capital,
Total capital, Tier 1 leverage, and Tier 1 common. Under the Federal Deposit Insurance Corporation
Improvement Act of 1991, federal regulatory agencies were required to adopt regulations defining five
capital tiers for banks: well-capitalized, adequately capitalized, undercapitalized, significantly
undercapitalized and critically undercapitalized. Failure to meet minimum capital requirements can
result in certain mandatory and discretionary actions by regulators that, if undertaken, would have a
direct material effect on the Company's financial statements.
The Company's capital adequacy assessment process contemplates a wide range of risks that the Company
is exposed to and takes into consideration potential performance under a variety of stressed economic
conditions, as well as regulatory expectations and guidance, rating agency viewpoints and the view of
capital markets participants.
The following table provides information regarding the consolidated capital ratios for the Company and
for WFBNA.
Figure C-2 Capital Ratios
Heading
column
Capital row
3:Year
Ratioscolumn
ended 1 Capital
December
- Basel:Tier Ratios
1 risk-based - Basel
31, 2012:WellsI column
capital Fargo
Year 2:Year
Bank,
ended ended December
N.A.end
December heading 31, 2012:Wells
row
31, 2012:Wells
2012:Wells Fargo & Fargo & Company
& Company:14.63%
Company:11.75%
Year ended
Capital December
Ratios 31, 2012:Wells Fargo Bank, N.A:10.11%
Year ended
Capital
Year Ratios
ended -- Basel:Tier
Basel:Total
December
December 31, 1 risk-based
31, 2012:Wells
capital
Fargo
leverage Year
2012:Wells Fargo
Year
Bank,
ended ended December
N.A:12.45%
Bank,December
N.A:8.47%
31,
31, 2012:Wells Fargo
Fargo & Company:9.47%Summary of Resolution Plan
The following tables provide information regarding the Company's Tier 1 common equity calculations
under Basel I and as estimated under Basel III, respectively, for the consolidated Company.
Figure C-3 Tier
that is1the
(Footnote Common
used 1. Tier
by Equity
1position
common
investors, under
equity
analysts Basel
is
and I regulatory
aservices
non-GAAP
bank financial measure
agencies to
assess
Management
measures capital
of reviews
capital asTier
part of
1offinancial
common
its equity
financial companies.
along
analyses with
and other
has included
corresponding
interest in suchthis non-GAAP
reconciliation
information financial
to
on total
the partinformation,
equity,
of because
market and
of the
current
participants.End footnote.)
Heading
(In row column
(In Billions):Total
Billions):Non 1 (inDecember
equity
controlling Billions)
interests column
20122:December
31,December :$ 158.9 201231,
31,December :$2012
(13) end heading row
(In
(In Billions):Total Wells
Billions):Adjustments: Fargo stockholders'
Preferred equity equity
December 31, 2012 31,
:$ 2012
(12.0):$ 157.6
(In
(In
(In Billions):Goodwill
Billions):Applicable and intangible
over deferred taxes assets
December(other than
31, 2012 MSRs)
31,:$ December
3.2 :$ 31, 2012 :$ (32.9)
(In Billions):MSRs
(In Billions):Cumulative
Billions):Other
Billions):Tier 1
specified
December
common other 31,
equity
limitations
comprehensive
2012 :$ (0.6)
December
December
income
31, 2012 :$ (A)
2012
December $ 31,(0.7)
109.0 2012 :$ (5.6)
(In Billions):Total
guidelines for risk-weighted
risk-based capital, assets((Footnote
on-balance sheet 2. Under the regulatory
amounts
broad
the ofcategories
risk
nature ofderivatives
anyfrom and
according
collateral. off-balance
to sheet
theassociated
obligor items if assets
or,with andthe
are assigned
relevant, credit
to equivalent
one
guarantorof several
or
is then
weighted
total
(In
multiplied
values
risk-weighted
Billions):Tier 1
by the
each
assets.
common ofThe
risk
End
aggregate
weight
the risk
footnote.)
equity to total
dollar
categories
December
amount
are
risk-weighted
that in eachfor
category.
aggregated
31, 2012 :$
risk
(B) Thecategory
resulting
determining
$
assets(Footnote 1,077.1
2.)
December 31, 2012 :$ (A)/(B) 10.12%Summary of Resolution Plan
Figure C-4 Tier is1used
(Footnote Common Equity under Basel III (Estimated)
that
agencies
companies.
equity to1.assess
along
Tier
by
Management
with
1the
common
investors,
other measures
equity
analysts
capital position
reviews
is
and
Tier
of
aofnon-GAAP
bank
capital
regulatory
financial
1 common as part
financial measure
services
ofrow
its financial
Heading row column analyses
financial
total
1:(infrom and
Billions) has
information,
equity, because
columnincluded
of and this
current
2:December the non-GAAP
corresponding
interest in
31,participants.
2012 such
end reconciliation
heading toI
(in
(in
to Billions):Tier
Billions):Adjustments
Basel
other III represent
comprehensive information
1 common
Footnote
assets
income
equity
are
reconciling on I the
under
2calculated
The
Basel Basel
adjustments,
deducted for part
Basel
to Basel III
based
Basel of
III market
ITier
December
primarily
I on 1can
common
(Footnote
purposes,
31,
certain
to
2012:$
equity
3.derive
management's Adjustments
components 109.0
and
current
Tier 1 risk-weighted
from
of Basel
cumulative
common equity
under
on
may the Basel
impact III.
valuation Footnote
of
adjustments 5.
cumulative
banking
from Volatility
interpretation
other
agencies
Basel I in
of interest
the Basel
comprehensive
to in notices
Basel III,rates
III
andincome
of have
capital
proposed
MSRs and a
rules significant
MSRs
subject proposed
to and impact
by federal
therefore,
threshold deductions,
as defined under
comprehensive Basel
income rulemaking
III,
nterpretations
related to announced
(ininBillions):Other
futureAFS reporting
and
securities inand
periods.
IIIassumptions June 2012.
End
defined The proposed
footnotes.)):Cumulative
used in rulesother
and
December
(in
(in 31, 2012:$5.3
Billions):Total
Billions):Threshold
deductions, as defined
estimating
depending
adjustments from
deductions,
under Basel
Basel
on final
asBasel
III, definedIcalculations
include
December
promulgations
to Basel
under
individual III31,areofbenefit
December
Basel III
and
subject
2012:$0.4
Basel
(Footnote
aggregate
pension
31, to
III change
capital
2012:$5.7
4.
plans
Threshold
limitations,rules. End footnotes.)
as
taxa percentage
liability,
deferred tax whichof
assets Tier 1 common
approximates
and investments equity,
theinMSR with respect
book value(in
unconsolidated to MSRs
times (net
thecompanies.of
applicable related deferred
statutory tax rates),
Footnote
anticipated
(in 5. under
End
Billions):Total
Under current
footnotes.)
BaselBasel
risk-weighted
proposals,
December
III December assets31,31, 2012:$0.9
2012:$(C)
anticipated
risk-weighted assetsunder$ financial
Billions):Tier
113.8
Basel
incorporate III 1 common
(Footnote
different 6. equity
classifications ofrisk
assets,
models, with
alongcertain
with risk weights
adjustments based
to on a
addresstoThe borrower's
a change
combination credit
of rating or Wells
credit/counterparty, Fargo's own
operational and
market
under
Basel risks,
Basel and
III
III capital is other Basel
preliminary
rulemaking III
and
and elements.
subject
interpretations amount
thereof of risk-weighted
depending on
byassets$ 1,389.2 final assets anticipated
promulgation of
regulatory
anticipated authorities.
(in Billions):Tier
under 1Basel End
common footnote.)
equity
III December toDecember 31, 2012:$(D)
total2012:$(C)/(D)
31, risk-weighted 8.19%Summary of Resolution Plan
Funding
The objective of effective liquidity management is to ensure that the Company can meet customer loan
requests, customer deposit maturities, withdrawals and other cash commitments efficiently under both
normal operating conditions and under unpredictable circumstances of industry or market stress. To
achieve this objective, the Company's Corporate Asset Liability Management Committee ("ALCO")
establishes and monitors liquidity guidelines that require sufficient asset-based liquidity to cover
potential funding requirements and to avoid over-dependence on volatile, less reliable funding markets.
The Company sets these guidelines for both the consolidated balance sheet and for the Parent on a stand-
alone basis to ensure that it can serve as a source of strength for its IDIs.
Unencumbered debt and equity securities in the securities available-for-sale portfolio provide asset
liquidity, as do the immediately liquid resources of cash and due from banks and federal funds sold,
securities purchased under resale agreements and other short-term investments. Asset liquidity is further
enhanced by the Company's ability to sell or securitize loans in secondary markets and to pledge loans to
access secured borrowing facilities through the Federal Home Loan Banks ("FHLB") and the Federal
Reserve Bank's Discount Window.
Core customer deposits have historically provided a sizeable source of relatively stable and low-cost funds.
Additional funding is provided by long-term debt, other foreign deposits, and short-term borrowings.
Wells Fargo accesses domestic and international capital markets for long-term funding (generally greater
than one year) through issuances of registered debt securities, private placements and asset-backed
secured funding.
The following table summarizes the Company's funding sources, using average balances for the years
indicated.
Figure C-5 Funding Sources (average balance)
Heading
(In
(In row column 1sources
Millions):Funding
Millions):Funding (in Millions)
sources column 2:2012
Deposits:Market rate column
Deposits:Interest-bearing
and 3:2011
checking
other end
2012:$
savings heading
30,564 row
2011:$
2012:$505,310 47,705
2011:$464,450
(In
(In
(In Millions):Funding
Millions):Funding
Millions):Funding sources
sources
sources Deposits:Savings
Deposits:Other
Deposits:Deposits certificates
timein deposits
foreign 2012:$59,484
2012:$13,363
offices 2011:$69,711
2011:$13,126
2012:$67,920 2011:$61,566
(In
(In
(In Millions):Funding
Millions):Funding
Millions):Funding sources
sources
sources Deposits:Total interest-bearing
Deposits:Short-term
Deposits:Long-term borrowings deposits 2012:$676,641
2012:$51,196
debt 2012:$127,547 2011:$656,558
2011:$51,781
2011:$141,079
(In
(In Millions):Funding
Millions):Funding sources
sources Deposits:Other
Deposits:Total liabilities 2012:$10,032 2011:$10,955
(In
(In Millions):Funding
Millions):Funding sources Deposits:Total interest-bearing
sources Deposits:Portion of nonsources
funding liabilities
interest-bearing 2012:$865,416
funding
2012:$ 1,169,465 sources 2011:$860,373
2012:$304,049 2011:$241,689
2011:$1,102,062Summary of Resolution Plan D. Description of Derivative and Hedging Activities Wells Fargo primarily uses derivatives to manage exposure to market risk, interest rate risk, credit risk and foreign currency risk, and to assist customers with their risk management objectives. The Company designates derivatives either as hedging instruments in a qualifying hedge accounting relationship (fair value or cash flow hedge) or as free-standing derivatives. Free-standing derivatives include economic hedges that do not qualify for hedge accounting and derivatives held for customer accommodation or other trading purposes. The use of derivatives helps minimize unplanned fluctuations in earnings, fair values of assets and liabilities, and cash flows caused by interest rate, foreign currency and other market value volatility. Wells Fargo offers various derivatives, including interest rate, commodity, equity, credit and foreign exchange contracts, to its customers as part of its trading businesses. The Company typically offsets the exposure from such contracts by entering into other financial contracts. These derivative transactions are conducted in an effort to help customers manage their market price risks. The customer accommodations and any offsetting derivative contracts are treated as free-standing derivatives. To a much lesser extent, the Company takes positions executed for its own account based upon market expectations or to benefit from price differentials between financial instruments and markets. Free-standing derivatives include embedded derivatives that are required to be accounted for separately from their host contracts. The following table presents the total notional or contractual amounts and fair values for the Company's derivatives. Derivative transactions can be measured in terms of the notional amount, but this amount is not, when viewed in isolation, a meaningful measure of the risk profile of the instruments. The notional amount is generally not exchanged, but is used only as the basis on which interest and other payments are determined. Derivatives designated as qualifying hedge contracts and free-standing derivatives are recorded on the balance sheet at fair value in other assets or other liabilities. Customer accommodation, trading and other free-standing derivatives are recorded on the balance sheet at fair value in trading assets, other assets or other liabilities.
Summary of Resolution Plan
Figure D-1 Derivative Assets and Liabilities
Heading
amount row column
column 1 (in column
3:December Millions)
31, 2012 column 2:December
Fair value:Asset 31, 2012
31, 2011derivatives Fair value:Notional
column 4:December or contractual
value:Liability
column
Fair
(In 6:Decemberderivatives
value:Liability
Millions):Derivatives 31, 2011
derivatives Fair
designated
5:December
endvalue:Asset
heading
as hedging rowderivatives Fair value:Notional
column
instruments:Interest 7:December
rate
or 31,
contracts 201131, 2012
contractual amountFair
(Footnote
December
swaps and 1. Notional
31, 2011,
designated amounts
of
asbasis
one presented
swaps
hedging that exclude
are combined
instrument. $4.7B
End at
with December
receive
footnote.) 31, 2012,
fixed-rate/pay
December 31, and $15.5B
floating-rate
2012 Fair at
value:Notional
or
or contractual
December 31,
contractual amount:$
2012 Fair
amount:87,537 92,004 December
value:Liability
December 31,31,2011
2012Fair
derivatives:2,696 Fairvalue:Asset
value:Asset derivatives:7,284
Decemberderivatives:8,423
31, 2011 Fair value:Notional
December
(In
December 31,
31, 2011
Millions):Derivatives
2012 Fair
Fair value:Liability
designated
value:Notional derivatives2,769
as hedging
or instruments:Foreign
contractual amount:$ 27,382 exchange
December contracts(Footnote 1.)
Fair
Fair
(In
value:Asset
December 31,
value:Asset derivatives:1,808
2011 Fair
derivatives:1,523
Millions):Derivatives designated
December
value:Notional
Decemberor
as hedging
31,
31, 2012
contractual
2011 Fair value:Liability
amount:22,269
Fair
instruments:Totalvalue:Liability December
derivatives 31,31,2011
derivatives:274
derivatives572
designated
2012
as
qualifying
amount:$
December 0hedging
December
31, 2012 instruments
31, 2012 December
Fair 31,
value:Asset 2012 Fair value:Notional
derivatives:9,092 or contractual
or
(Incontractual
December 2011 Fair
31, amount:0
Millions):Derivatives
derivatives(economic Fair value:Liability
December
value:Liability
not designated
hedges):Interest
derivatives:2,970
31, 2011 Fair value:Asset
derivatives3,341
as contracts(Footnote
rate hedging
December
instruments
31, 2011 Fair value:Notional
derivatives:9,946
2. Free-standing
Includes free-standing
derivatives
residential
2012 Fair (economic
MSRs, MHFS,
value:Notional hedges)
loans
or used
and to
contractual hedge
other the risk
interests
amount:$ of changes
held.
334,555 End in the31,
footnote.)
December fair value
December
2012 of31,
Fair value:Asset
derivatives:450
value:Notional
December 31, December
or
2011 contractual
Fair 31,amount:377,497
2012 Fairderivatives2,011
value:Liability value:Liability
December derivatives:694
31, 2011 December
Fair value:Asset 31, 2011 Fair
derivatives:2,318
(In Millions):Derivatives
(economic
contractual hedges):Equity
amount:$ 75 not designated
contracts
December 31, as
December
2012 hedging
31,
Fair instruments
2012 Fair
value:Asset Free-standing
value:Notional
derivatives:0 orderivatives
December
December 31,
value:Notional
31, 2012
or Fair value:Liability
contractual amount:0
2011 Fair value:Liability derivatives:50
December
derivatives0 31, December
2011 Fair 31, 2011
value:Asset Fair
derivatives:0
(In Millions):Derivatives
(economic hedges):Foreign notexchange
designated as2012
hedging
contracts Fairinstruments
December 31, 2012 Free-standing derivatives
contractual
December
value:Notional
December
amount:$
31,
31, 2012 3,074
Fair
or contractual
2011 Fair
December
value:Liability
amount:5,833
value:Liability
31,
derivatives:64
December
derivatives3
value:Asset
December 31,Fair
Fair 2011
31, 2011 Free-standing
value:Notional
derivatives:3 or
Fair derivatives:250
value:Asset
(In
or Millions):Derivatives
(economic hedges):Credit
contractual amount:$ 16not designated
contracts
December - 31,as hedging
protection
2012 Fair instruments
purchased December
value:Asset 31,
derivatives:02012 derivatives
Fair value:Notional
December
or 31,
contractual 2012
2011 Fair
31, amount:125 value:Liability
December 31,derivatives:0 December derivatives:3
31, 2011 Fair value:Notional
December
(In Millions):Derivatives
derivatives(economic Fair value:Liability
not designated
hedges):Other as2011 Fair value:Asset
derivatives0
31,hedging
derivatives instruments
December 31, 2012Free-standing
Fair
or contractual
December 31,
value:Notional
December 31,
amount:$
2012
or Fair 2,296
contractual December
value:Liability
amount:2,367
2011 Fair value:Liability
2012
derivatives:78
December
derivatives117
Fair value:Asset
December
31, 2011 Fair 2011value:Notional
31,derivatives:0
Fair derivatives:0
value:Asset
(In Millions):Derivatives
(economic
December hedges):Subtotal
31, 2012 Fair notDecember
designated31,
value:Liability as 2012
hedging Fair
derivatives:886 instruments
value:Asset
December Free-standing
derivatives:453
31, 2011 Fair derivatives
value:Notional
or
(Incontractual
December 31, amount:0
2011
Millions):Customer Fair December 31,
value:Liability
accommodation, 2011 Fair value:Asset
derivatives2,131
trading and other derivatives:2,571
free-standing derivatives:Interest rateFair
contracts
December
value:Asset
December 31,
31, 2012
2011 Fair
Fair value:Notional
derivatives:63,617 December
value:Notional or
or contractual
31, 2012
contractual Fairamount:$ 2,774,783
value:Liability
amount:2,425,144 December 31,31,2011
derivatives:65,305
December 2012
Fair
(In value:Asset
December 31, derivatives:81,336
Millions):Customer
2012 Fairaccommodation,
value:Notional December
trading
or 31, 2011
and
contractual otherFair value:Liability
free-standing
amount:$ 90,732 derivatives83,834
derivatives:Commodity
December 31, 2012 contracts
Fair
Assetvalue:Asset
December derivatives:3,456
31, 2011 Fairaccommodation,
derivatives:4,351 December December
value:Notional
31, 2011or 31, 2012
contractual
Fair and Fair value:Liability
amount:77,985
value:Liability derivatives:3,590
December
derivatives4,234 31, 2011 Fair value:
(In Millions):Customer
December 31,
Fair value:Asset 2012 Fair value:Notional
derivatives:3,783 December trading
or contractual other free-standing
amount:$
31, 2012 amount:68,778 71,958 derivatives:Equity
December
Fair value:Liability derivatives:4,114 31, 2012 contracts
December
December 31,
31, 2011 Fair
2011December value:Notional
value:Asset
Fairaccommodation,
value:Liability or contractual
derivatives:3,768
derivatives3,661
(In Millions):Customer
exchange
December contracts
31, 2011
2012 Fair 31, 2012
Fair value:Notional
value:Asset trading
Fair
derivatives:3,713and other
value:Notional free-standing
Decemberor contractual
31, 2012derivatives:Foreign
amount:$
Fair 166,061
December
(In
contracts -
31,
Millions):Customer
protection value:Asset
accommodation,
sold December 31,
or contractual
derivatives:3,151
trading
2012
amount:140,704
December
andvalue:Notional
Fair other 31,
free-standingor 2011 Fair value:Liability
value:Liability derivatives:3,241
derivatives:Credit
contractual derivatives2,803
amount:$
December 26,455
31,
value:Notional 2012December
Fair 31, 2012
value:Liability
or contractual Fair
amount:38,403 value:Asset
derivatives:2,623
December derivatives:315
December
31, 2011 Fair31, 2011 Fair derivatives:319
value:Asset
December
(In
Credit 31,
contracts 2011
Millions):Customer Fair
- protectionvalue:Liability
accommodation,
purchased derivatives5,178
trading
December and other
31, 2012 free-standing
Fair value:Notionalderivatives:
contractual
December
contractual
December
amount:$
31, 2012
amount:36,15
31, 2011
29,021
Fair
Fair
December
value:Liability
December
value:Liability 31,31, 2012 Fair
derivatives:329
2011 Fair
derivatives276
value:Asset
December
value:Asset 31, 2011 Fairorvalue:Notional or
derivatives:1,495
derivatives:3,254
(In
FairMillions):Customer
December 31,
value:Asset 2012 Fairaccommodation,
value:Notional
derivatives:76,379 trading
or
December and
contractual
31, 2012other free-standing
amount:$
Fair 0 December
value:Liability derivatives:Subtotal
31,2011
2012
derivatives:79,202
December
Fair
(In 31, 2011
value:Asset
Millions):Customer Fairaccommodation,
value:Notional
derivatives:96,179 or
December contractual
trading 31, 2011
and amount:0
otherFair December
value:Liability
free-standing 31,
derivatives99,986
derivatives:
Total
Asset derivatives
Fair value:Notional not
derivatives:76,832 designated
or contractual
December as hedging
amount:$
31, 2012 instruments
0 December
Fair December
31,
value:Liability 2012 31,
Fair 2012
value:
derivatives:80,088
December value:Notional or contractual amount:0
Fair
trading
December
Fair and31,
31,
value:Asset
2011
value:Liability
other
2012
Fair value:Asset
derivatives102,117
free-standing
Fair value:Notional
derivatives:85,924
derivatives:98,750
(In
derivatives:Total
or
December
Millions):Customer
derivatives
contractual
31, 2012
December
amount:$
Fair
31,
0December
2011
accommodation,
before netting
December
value:Liability 31,2011
2012
derivatives:83,058
December
Fair
(In 31,
value:Asset 2011
Millions):Customer Fair value:Notional
derivatives:108,696
accommodation, or
December contractual
trading 31,
and 2011amount:0
other Fair value:Liability
free-standing 31,
derivatives105,458
derivatives:Netting
(Footnote
related
The cash
amount 3; collateral,
Represents
of cash netting
with
collateral the of derivative
same
netted counterparty
against asset and
subject
derivative liability
to
assets balances,
master
and netting
liabilitiesandarrangements.
was $5.0B and
respectively,
or contractual $14.5B,
at2012
December respectively,
31, 2011. End at December Fair31,
footnote.) 2012, and
December 31,$6.6B
2012 andFair$15.4B,
value:Notional
December
December
Asset
(In 31, amount:$
31, 2011 Fair
derivatives:(81,143)
Millions):Customer
0value:Liability
December 31, 2012
December 31,derivatives:(71,116)
Fairaccommodation,
value:Notional or contractual
2011
trading Fair
and
value:Asset
amount:0
value:Liability
other
derivatives:(62,108)
December
free-standing 31, 2011 Fair value:
derivatives(89,990)
derivatives:Total
December 31,
Fair value:Asset 2012 Fair value:Notional
derivatives:23,816 or contractual amount:$ 0 December 31, 2012
December
December 31, 31, 2011
2011 Fair value:AssetDecember
Fair value:Notional
value:Liability
31, 2012amount:0
or contractual
derivatives:27,553
derivatives15,468
Fair value:Liability derivatives:11,942Summary of Resolution Plan
E. Memberships in Material Payment, Clearing, and Settlement Systems
During 2012, the Company engaged in cash and securities transactions across 33 different payment, clearing and settlement systems ("networks"):
28 domestic and five international. Examples of these networks, including all material networks, are described in the following table.
Figure E-1 Material Networks
Heading
column row column 1:No.
4:Description columnrow
end heading 2:Network
Number:1 column 3:Domestic
Network:Fedwire or International
Domestic
that
gross or International:Domestic
issettlement
owned
order-by-order and operated
system.
basis bynetting.
Payments
without
Description:A
the Federal
are Reserve.
continuously
Number:2
wire transfer
Fedwire
settled
Network:ClearingFunds
on an isFunds
service Service
provider
a real-time
individual,
House Interbank
Payments Payments
Interbank System Domestic
System or International:Domestic
("CHIPS") is a large-value Description:The
wire transfer Clearing
payment House
system
with
of
of real-time
settlement,
U.S. dollar final settlement
which occurspayments
cross-border of payments.
throughout andthean Payments
day. CHIPS
increasing become
processes
volume final on completion
of aU.S.
large proportion
domestic
payments.
Number:3
Description:ACHIPS is owned
Network:Fedwire
national by the world's
Securities
securities largest
Service
book-entry commercial
Domestic
system that banks.
isorowned
International:Domestic
and operated
by the Federal
securities
Securities and Reserve.
related
conducts Fedwire
funds,
issuance, on anSecurities
individual
transfer conducts
and
and settlement real-time
gross
forbasis.
all transfers
Fedwire
marketable of
Treasury securities,
enterprise securities for
andmany federal
for certain government
international agency and
organizations' government-sponsored
securities.Summary of Resolution Plan
Figure E-1 Material Networks - Continued
Heading
column row column
4:Description or1:No. columnrow
endpayment
heading 2:Network
Numbe:4 column 3:Domestic
Network:Electronic or International
Network
("EPN")
operated
Domestic
is
by an
The
International:Domestic
electronic
Clearing House system
Association,
Description:The
providing
LLC. ACH
The services
ACH thatPayment
Electronic
system
Payment
is owned
facilitates andNetwork
exchanges
of
Thebatched
system
Social debit
Security, and
processes credit
mortgage payments
pre-authorized
and utility among business,
recurring
payments, payments
and consumer
such as
non-recurring and government
payroll,
payments such accounts.
as
telephone-initiated
at lockboxes and
International:Domestic payments
points of andNumbe:5
sale. the conversion
Description:FedACH ofelectronic
checks into
Network:FedACH
is an ACH payments
Services
payment Domestic
system or
providing
ACH services
batched
The debit
system and
and is owned
credit and
payments operated
among by the
business,Federal Reserve.
consumer and The ACH
government system exchanges
accounts.
Numbe:6
Domestic
("FICC") orprocesses
Network:Fixed
is
pre-authorized
Income
aInternational:Domestic
U.S. securities clearing
recurring
Clearing payments
Corporation
Description:The
agency. One
and
of Fixed
FICC's
non-recurring
- Government
Income
two Clearing
divisions,
payments.
Securities Division
Corporation
the Government Securities Division, provides real-time trade matching, risk
and netting for trades in U.S. Government debt issues, including repurchase agreements. managementSummary of Resolution Plan
Figure E-1 Material Networks - Continued
Heading
column
Domestic row column 1end
4:Description No.heading
columnrow 2:Network
Number:7 column 3:Domestic
Network:The or International
Depository Trust Company
("DTC")
services isoraeligible
for
International:Domestic
central securities
securities and
Description:The
depository
other providing
financial
Depository
depository
assets to its
Trust
and Company
book-entry
participants,
which
system are
securities principally
for
operated
("NSCC"). NSCCtrades banks
byprovides
its and
thataffiliate, broker-dealers.
are clearing,
cleared and
National settled DTC
inrisk
Securities
settlement, the processes
Continuous
Clearing the movement
Net Settlement
Corporation
management, central of
counterparty
for
American servicestrades
broker-to-broker
depositary and a involving
guarantee
receipts, of completion
equities,
exchange-traded forand
corporate
funds, certain
and transactions
municipal
unit investmentdebt,
trusts.
Number:8
Domestic
Settlement Network:Viewpointe
or
& International:Domestic
Association Clearing,
Services, LLC isSettlement
Description:Viewpointe
aand
private & Association
sector Services, LLC
Clearing,
clearinghouse
that provides
end-to-end
Number:9 cloud-based
check
Network:The information
image exchange,
Small Value governance,
clearing
Payments check
settlement
Company archive,
and
L.L.C.ACH association services.
Domestic
("SVPCo") or International:Domestic
is theimaging
Check Image Description:The
Exchange business Small Value
of TheinstitutionsPayments
Clearing House, Company L.L.C.
providing
The Company
through check
an Image uses SVPCo
Paymentsandtorelated services
distribute checks to financial
to other SVPCo of
members, all sizes.
including
to exchange images and shareNetwork that allows
best practices financial
amongst institutions
one another.Summary of Resolution Plan
Figure E-1 Material Networks - Continued
Heading
column rowReserve
columnClearing
4:Description 1:No. column
endReserve
heading 2:Network
row column 3:Domestic or International
the
The
Federal
Description:The
institution
Company involvedFederal
with
leverages
Network
theorFed
the plays
clearing and
Clearing aNumber:10
Domestic
critical
settlement
network
or Network:Fed
role of
for interbankdrawn
Clearing
International:Domestic
aschecks
the intermediary
payments.
-
on banks that
are
Inc.not
Number:11
is amembers
global of a
paymentslocal
Network:Visa, private
Inc. Domestic
technology sectoror
company clearinghouse.
International:Domestic
that connects consumers,Description:Visa,
businesses,
banks
to use and governments
electronic
Number:12 payments
Network:Chicago in more
insteadthan 200 countries
ofMercantile
MercantilecashExchange,
and checks. and
Inc.territories,
Domestic enabling them
or International:
Domestic
provides Description:The
clearing and Chicago
settlement services for Exchange
futures, Group
options, and ("CME")
over-the-counter
are provided derivatives
by the CME products.
Clearing divisionThese clearing
of CME's and settlement
wholly settles services
ownedfutures
subsidiary,
Chicago
options Mercantile
contracts Exchange
traded on the Inc. CME
Chicago Clearing
Mercantile clears
Cityand
Exchange Inc. and and
futures
New and
York
Mercantile
the clearing
options
Mercantile
Exchange
and
exchanges:
Exchange,
and
settlement the Board
Inc.,
Global
services
of Trade
Commodity
Emissions
for
of the
Exchange,
Exchange.
over-the-counter
of
CME Chicago,
Inc.,
derivatives the five
Inc.,
Dubai
Clearing
other
backs
transactions,
CME Clearing provided
Europe through
Limited, CME's
which ClearPort platform. CME wholly owns
providing
Number:13 clearing
Description:LCH.Clearnet
England Wales.
services
andNetwork:LCH.Clearnet
For
for various
Ltd.
U.K. ("LCH")Ltd.was
regulatory is established
over-the-counter
Domestic or
incorporated
purposes,
inderivatives
2011 theandlaws
began
in Europe.
International:International
LCH under
isAct
a "recognized of
clearing
LCH alsohouse"
is a under
derivativesthe Financial
clearing Services
organization andinMarkets
the U.S. and 2000.
is
subject
Commodity
Group to Commodity
Exchange
Limited. The groupFutures
Act.isLCH Trading Commission
is a wholly-owned
currently majority-owned rules and
subsidiary the U.S.
of LCH.Clearnet
by its users.Summary of Resolution Plan
Description of Foreign Operations
While the Company does maintain foreign operations, the Company's operations and employees primarily
are located in the United States. As a result, the vast majority of revenues, profits, assets, and liabilities
are related to the Company's domestic operations.
Wells Fargo's foreign operations are conducted through WFBNA's overseas branches
(Footnote8.WFBNAhasbranchesintenjurisdictionsand27representativeofficesin24jurisdictions.Endfootnote.)andthe Company's
foreign subsidiaries, the largest of which is Wells Fargo Bank International, a Dublin-based bank
supervised by the Central Bank of Ireland.
At December 31, 2012, the Company's foreign loans totaled $37.8 billion, representing
approximately 5% of the Company's total consolidated loans outstanding and approximately 3%
of the Company's total assets. Wells Fargo classifies loans as foreign if the borrower's primary
address is outside the United States.
In addition to foreign lending, Wells Fargo's international business line, Wells Fargo
International Group, focuses on facilitating U.S. customers' needs internationally by providing
certain financial services globally, including foreign exchange, global payment services, global
trade services, and international treasury management. Wells Fargo serves U.S. customers doing
business globally, foreign companies doing business in the United States, and financial
institutions globally.
The Company also engages in investment advisory and broker-dealer activities through a limited
number of locally chartered and licensed subsidiaries.
Less than 3% of Wells Fargo team members are employed outside the United States.You can also read
