Public Meeting Regarding Norwest Corporation and Wells Fargo & Company
Thursday, September 17, 1998
Transcript of Applicant Presentation
6
17 APPLICANT PRESENTATION:
18
19 MR. HAZEN: Thank you very much. Good 09:06:44
20 morning. I'm Paul Hazen. I'm the chairman of Wells 09:06:46
21 Fargo. Les Biller is here, and Les is the president 09:06:48
22 of Norwest. He and I have coordinated our remarks 09:06:54
23 so that we believe that between us we will have 09:06:58
24 covered everything that's relevant with regard to 09:07:02
25 the proposed merger between our two companies. 09:07:04
7
1 I'm going to divide my remarks this morning 09:07:06
2 into two parts. First, I'll describe what the 09:07:10
3 Norwest-Wells Fargo merger will mean for the 09:07:12
4 communities where we do business, specifically what 09:07:14
5 values will guide the new company as we move 09:07:20
6 forward. And, secondly, I'll also describe Wells 09:07:22
7 Fargo's record since 1852 of keeping its promises to 09:07:24
8 the communities where it does business, and assure 09:07:30
9 you that we'll continue to use best practices with 09:07:32
10 respect to CRA lending, services, and investments. 09:07:36
11 The new Wells Fargo & Company will have one of 09:07:40
12 the most widely known brand names in the financial 09:07:42
13 services industry, a name that has endured for 146 09:07:46
14 years. Since the gold rush, Westerners have relied 09:07:50
15 on Wells Fargo for honest, reliable banking service. 09:07:54
16 It may surprise you to know that Minnesotans, too, 09:07:58
17 once counted on Wells Fargo for express delivery 09:08:02
18 services. 09:08:04
19 If I may, I'd like to give you a one-minute 09:08:04
20 history of Wells Fargo. In 1852, Henry Wells and 09:08:08
21 William Fargo founded Wells Fargo & Company to 09:08:12
22 provide reliable banking and express services to 09:08:16
23 Western pioneers, and they opened their first office 09:08:18
24 in San Francisco. 09:08:22
25 By 1858, as Minnesota became a state, Wells 09:08:22
8
1 Fargo had established 78 offices. These offices and 09:08:28
2 stage coaches linked mining camps and towns all over 09:08:32
3 the West. In May 1869, the completion of the 09:08:34
4 transcontinental railroad allowed Wells Fargo 09:08:38
5 express messengers to ride the rails. By April 1, 09:08:42
6 1897, Wells Fargo was operating in the upper Midwest 09:08:46
7 aboard the trains of the Chicago Great Western 09:08:50
8 Railroad, and had 31 offices in Minnesota. The Twin 09:08:52
9 Cities locations became part of Wells Fargo's ocean 09:08:56
10 to ocean express network of offices around the 09:09:00
11 country and around the world. By 1910, Wells Fargo 09:09:02
12 had offices in 194 Minnesota communities, from Adams 09:09:06
13 to Zumbrota. 09:09:10
14 In 1918, Wells Fargo changed abruptly when as a 09:09:12
15 wartime measure due to the first world war, the 09:09:18
16 federal government took over all of the 10,000 then 09:09:22
17 Wells Fargo offices throughout the U.S. as our 09:09:24
18 express operations, and the Wells Fargo name 09:09:28
19 disappeared from depots and storefronts throughout 09:09:30
20 Minnesota. However, Wells Fargo's banking 09:09:34
21 operations continued in the West, carrying on the 09:09:36
22 most famous name in Western banking. 09:09:40
23 This year our history adds a new chapter with 09:09:42
24 our merger with Norwest. We want to build a strong 09:09:44
25 foundation for the new Wells Fargo that will last a 09:09:48
9
1 long time. We pledge to make the transition as 09:09:52
2 smooth as possible, and I can assure you that we 09:09:54
3 will take the time to do it right. 09:09:58
4 In bringing Norwest and Wells Fargo together, 09:10:00
5 we find that our cultures have much in common. 09:10:06
6 These similarities include high performance 09:10:08
7 orientation, commitments to customer service, high 09:10:12
8 quality of team member talent, and strong records of 09:10:14
9 community involvement. 09:10:18
10 One value that we find that Norwest and Wells 09:10:18
11 Fargo share is our belief that people are the best 09:10:22
12 competitive advantage we have. At Wells Fargo, our 09:10:24
13 employees do whatever it takes to come through for 09:10:28
14 the customer. 09:10:30
15 Both Wells Fargo and Norwest believe in the 09:10:32
16 strong linkage between a diverse work force and 09:10:36
17 business success in an increasingly competitive 09:10:38
18 global economy. For Wells Fargo, nowhere is this 09:10:44
19 more evident than in California, a state that is a 09:10:48
20 true mosaic of ethnicities. The new Wells Fargo 09:10:50
21 will continue in its effort to recruit, retain and 09:10:54
22 promote women and minority employees in key 09:10:58
23 positions throughout the company in all of our 09:11:02
24 combined markets, just as we have since the 09:11:04
25 company's founding in 1852. 09:11:08
10
1 It is true that our banks do have different 09:11:12
2 business models, based on our geographic origins and 09:11:14
3 the different types of businesses we are in. For 09:11:18
4 example, Norwest grew up here in the Midwest with 09:11:20
5 more community banks than Wells Fargo's 09:11:24
6 predominantly urban markets. But that does not mean 09:11:26
7 that the new Wells Fargo would adopt an urban model 09:11:30
8 in areas where a community banking model would work 09:11:32
9 better. Both banks have been looking for a model to 09:11:36
10 cultivate the other's marketplace. We'll gain by 09:11:38
11 sharing our different business models that fit each 09:11:42
12 type of community in combining them into a common 09:11:44
13 operating philosophy. 09:11:48
14 Our commitment to all of the communities in 09:11:48
15 which we do business is to take best practices, 09:11:50
16 those things that work well in both organizations, 09:11:54
17 and apply them to the new Wells Fargo. 09:11:56
18 First, let me emphasize that the new Wells 09:12:02
19 Fargo will honor all of Wells Fargo's and Norwest's 09:12:04
20 previous CRA commitments. Wells Fargo is a leader 09:12:06
21 in outreach to women and minority-owned small 09:12:10
22 businesses in the West, if not the nation. These 09:12:14
23 commitments include a $10 billion, ten-year goal for 09:12:16
24 women-owned small businesses, a $1 billion, six-year 09:12:22
25 goal for providing loans to Latino-owned small 09:12:26
11
1 businesses, and a recently announced one billion, 09:12:28
2 12-year goal for loans to African-American-owned 09:12:34
3 small businesses. The new Wells Fargo will continue 09:12:36
4 to aggressively market its products to low income 09:12:38
5 and minority communities to ensure equal access to 09:12:42
6 credit and banking services to all citizens. 09:12:44
7 It is worth noting that in 1990, Wells Fargo 09:12:48
8 was the first major bank in the country to announce 09:12:50
9 a multi-year CRA lending goal, and the first bank to 09:12:54
10 exceed its goal. Our CRA goals and lending results 09:12:58
11 are shared with the communities we serve on an 09:13:02
12 ongoing basis. You can find state-by-state results 09:13:04
13 of our lending, service, and investment programs at 09:13:08
14 our web site, which is www.wellsfargo.com. 09:13:12
15 Some have asked, how can the new Wells Fargo 09:13:18
16 set goals when no one knows what will happen ten 09:13:22
17 years from now? Well, we can't predict the future, 09:13:24
18 but we do know that we'll be there to meet the 09:13:28
19 credit needs of communities and consumers, however 09:13:30
20 those needs change. We know that from our past 09:13:34
21 experience with our CRA program. It is flexible and 09:13:36
22 can accommodate new or special local programs as 09:13:40
23 needed. 09:13:42
24 Wells Fargo's most current CRA lending goal, 09:13:44
25 which is $45 billion over ten years, was announced 09:13:48
12
1 in December 1995, at the time of our merger with 09:13:50
2 First Interstate. This goal is a public commitment 09:13:52
3 to provide community lending and investments through 09:13:58
4 a comprehensive and focused CRA strategy that 09:14:00
5 capitalizes on the bank's unique small business and 09:14:04
6 community development lending strengths. We will 09:14:08
7 continue to honor this commitment. 09:14:10
8 To date, Wells Fargo has accomplished over 16 09:14:14
9 billion of this goal, resulting in the creation of 09:14:16
10 over 340,000 jobs and over 13,000 affordable living 09:14:18
11 spaces. 09:14:26
12 Wells Fargo and Norwest intend, through our 09:14:26
13 current and future community reinvestment programs, 09:14:28
14 to be the unrivaled banking leader in CRA lending 09:14:32
15 throughout our new 21-state territory. Wells Fargo 09:14:36
16 has achieved outstanding CRA ratings from its 09:14:38
17 primary regulator and will continue to do so. 09:14:42
18 Let me give you examples from two areas, small 09:14:46
19 business and community development lending, where 09:14:48
20 Wells Fargo has exemplified community reinvestment 09:14:50
21 best practices. 09:14:54
22 Since 1996, Wells Fargo has lent over $11 09:14:56
23 billion to small businesses and small farms. 09:15:00
24 According to the most current public data available, 09:15:02
25 Wells Fargo provided more small business loan 09:15:06
13
1 dollars to low and moderate income communities in 09:15:08
2 the U.S. than any other bank in both 1996 and 1997. 09:15:10
3 With Norwest's expertise in small farm lending, 09:15:16
4 Wells Fargo expects to outlocal the nationals and 09:15:20
5 become the premier small business and small farm 09:15:22
6 bank in the nation. 09:15:26
7 Wells Fargo is already a national leader in 09:15:28
8 community development financing for both the 09:15:32
9 construction of multi-family housing units and 09:15:32
10 financing to middle market businesses for job 09:15:36
11 creation. We believe that the creation of a 09:15:38
12 community development corporation, CDC, will further 09:15:40
13 enhance our community programs. Through the 09:15:44
14 creation of a new national CDC, Wells Fargo will 09:15:46
15 lend to nonprofit organizations that develop 09:15:50
16 affordable houses or provide technical assistance to 09:15:52
17 micro and very small businesses in low income 09:15:56
18 communities.
19 Additionally, Wells Fargo has developed a 09:16:00
20 portfolio of diverse and innovative CRA investments 09:16:04
21 to meet local community financing needs. Currently 09:16:08
22 Wells Fargo has a CRA investment portfolio of $213 09:16:10
23 million towards its $500 million, ten-year CRA 09:16:16
24 investment goal. 09:16:20
25 A significant portion of Wells Fargo's 09:16:20
14
1 investments are focused on rural markets. Wells 09:16:22
2 Fargo is the largest bank investor in the Rural 09:16:24
3 Community Assistance Corporation, RCAC, a nonprofit 09:16:28
4 agency dedicated to improving the lives of low 09:16:32
5 income, rural Americans. RCAC provides technical 09:16:36
6 assistance, loans, grants, and operational support 09:16:40
7 for organizations in rural communities. 09:16:44
8 When it comes to CRA contributions, both Wells 09:16:46
9 Fargo and Norwest have solid records of making 09:16:46
10 grants throughout their markets. In 1995, Wells 09:16:50
11 Fargo pledged that 75 percent of our contributions 09:16:52
12 would support credit counseling, affordable housing, 09:16:56
13 job training programs, schools serving low to 09:17:00
14 moderate income students, and programs that provide 09:17:04
15 social services in low income and rural communities. 09:17:08
16 Last year 78 percent of our contribution dollars 09:17:08
17 funded such activities. 09:17:10
18 We intend to continue to be a leader in a wide 09:17:12
19 range of cultural (sic) community reinvestment in 09:17:16
20 contribution-related issues. 09:17:18
21 Now to the business aspects of the merger. The 09:17:20
22 new Wells Fargo will have nine of the ten fastest 09:17:24
23 growing state economies in our markets. To serve 09:17:28
24 our customers, the new Wells Fargo will have a 09:17:30
25 strong delivery system across the new 21-state 09:17:34
15
1 territory, including traditional branches, 09:17:36
2 supermarket branches, business centers, ATMs, 09:17:38
3 24-hour telephone service, Internet banking, and PC 09:17:42
4 banking. These choices cover all income segments. 09:17:46
5 In our major metropolitan areas approximately 09:17:50
6 half of Wells Fargo's branches are located within a 09:17:54
7 mile of low income communities. In fact, to be 09:17:58
8 where our customers want or need us, we expanded our 09:18:00
9 network. In the past two years, we added 506 new 09:18:02
10 staffed offices, which include 353 supermarket 09:18:06
11 branches. 09:18:10
12 Just as Wells Fargo historically expanded its 09:18:10
13 delivery system from the stagecoach to the railroad 09:18:14
14 lines, we are embracing new banking technology and 09:18:16
15 new formats for branch offices. We will continue to 09:18:20
16 be a leader in community banking. 09:18:22
17 So, in a sense, today we are where we started 09:18:24
18 in 1852 - we are spanning the Western territories 09:18:26
19 and back to serving Minnesota communities. 09:18:30
20 Wells Fargo looks forward to merging with a 09:18:34
21 strong partner, Norwest, and continuing our historic 09:18:36
22 role as a leader under the Community Reinvestment 09:18:38
23 Act. We pledge to become the best financial 09:18:40
24 institution in this marketplace and in every 09:18:44
25 community we serve. Thank you. 09:18:46
16
1
2 CHAIRPERSON SMITH: Thank you. Mr. 09:18:50
3 Biller.
4
5 MR. BILLER: Thank you, and good morning. 09:18:52
6 I'm Les Biller, president of Norwest Corporation, 09:18:54
7 and I'm pleased to represent Norwest at this 09:18:58
8 important meeting. Our chairman, Dick Kavosovich, 09:19:00
9 very much wanted to be here today. Unfortunately, 09:19:02
10 he had a commitment in Washington, D.C., that's been 09:19:04
11 on his calendar for approximately a year, which he 09:19:06
12 was unable to change. But with me today is Jim 09:19:08
13 Campbell, president of our Minnesota bank, and the 09:19:12
14 person responsible for all of our Minnesota 09:19:14
15 marketplace. 09:19:16
16 The benefits to this merger for our team 09:19:18
17 members, our shareholders, and importantly for our 09:19:20
18 customers and our communities are clear and 09:19:24
19 compelling. We would not have entered into this 09:19:26
20 merger with Wells Fargo if we did not believe it was 09:19:28
21 in the best interests of all our stakeholders, our 09:19:32
22 shareholders, our 60,000 team members, our almost 09:19:36
23 ten million customers, and our communities. 09:19:38
24 For our customers, it means more convenience, 09:19:40
25 more products, and more service than ever before. 09:19:42
17
1 For our team members, it means more opportunities 09:19:44
2 for growth, both personally and professionally. For 09:19:46
3 our communities, it means a continued commitment to 09:19:50
4 investing in every single one of them with our 09:19:52
5 dollars, our resources, and our team members, not 09:19:56
6 because we're a charity, but because it's good 09:19:58
7 business. When our communities succeed, we succeed, 09:20:00
8 and it's impossible to have a healthy bank in a 09:20:04
9 struggling community. For our shareholders it means 09:20:06
10 the prospects of creating an even greater value for 09:20:10
11 their investment with a combined company. 09:20:12
12 I'd like to respond point by point to the six 09:20:14
13 primary concerns that I've heard about this merger. 09:20:18
14 Those concerns are job losses, branch closings, 09:20:20
15 fees, the conversion of our computer systems, 09:20:26
16 community lending and contributions, and the move of 09:20:28
17 corporate headquarters to San Francisco and its 09:20:30
18 effect on local decision-making. Let's take them 09:20:34
19 one at a time. 09:20:38
20 First, job losses. Some are concerned this 09:20:38
21 merger will result in significant job losses for the 09:20:40
22 Twins Cities and Minnesota. There will not be 09:20:42
23 significant job losses. I can pledge here, as I've 09:20:46
24 pledged to our own team members on several 09:20:48
25 occasions, the merger's effect on job losses here in 09:20:52
18
1 the Twin Cities, and indeed across all of Norwest, 09:20:54
2 will not be significant. The largest group of 09:20:58
3 Norwest people directly affected by this merger is 09:21:00
4 our headquarters staff here in Minneapolis. These 09:21:04
5 830 team members are approximately 1.4 percent of 09:21:08
6 our total work force of 60,000. Yes, a number of 09:21:10
7 these 830 jobs will go away, but that does not mean 09:21:14
8 that all of the people go away. We take seriously 09:21:18
9 the loss of even one job. However, we've already 09:21:22
10 proven in the recent consolidation of our banking 09:21:24
11 operation centers that we can eliminate jobs and 09:21:28
12 become more efficient, but there's still a way to 09:21:30
13 keep most of the people. We call it retain and 09:21:34
14 retrain. 09:21:36
15 We're being faithful to our retain and retrain 09:21:36
16 process in this transition. Our goal is to offer as 09:21:40
17 many opportunities as we can to our effective team 09:21:44
18 members for comparable positions in the new company. 09:21:46
19 Now thanks to technology, we'll keep some corporate 09:21:50
20 functions right here in Minneapolis by using virtual 09:21:54
21 offices. We're going to take our time. Our retain 09:21:56
22 and retrain process allows us to overstaff 09:22:00
23 temporarily in some areas so we can keep good 09:22:02
24 people. We're going to do it right. 09:22:04
25 Second, some have expressed concern that the 09:22:08
19
1 merger will result in a disproportionate share of 09:22:10
2 closing of banking stores in the low to moderate 09:22:14
3 income neighborhoods. That is not true. We expect 09:22:16
4 this merger will not result in any loss of services 09:22:20
5 in any of our markets. The only exception is a few 09:22:22
6 communities in Arizona and Nevada where our banking 09:22:26
7 stores overlap with Wells Fargo, and in those 09:22:28
8 communities, government regulators will require us 09:22:32
9 to sell certain assets to be consistent with federal 09:22:34
10 anti-trust rules. Even in those two states, 09:22:38
11 however, we'll continue to serve the vast majority 09:22:40
12 of those overlapping markets either through our 09:22:42
13 stores or through Wells Fargo's stores. 09:22:46
14 Third is fees. We're in a competitive 09:22:50
15 business. Our fees are and will remain competitive 09:22:52
16 in every market in which we do business. If our 09:22:54
17 customers don't believe they're getting value for 09:22:58
18 our fees, they'll take their business elsewhere. 09:23:00
19 They do have plenty of choices. And if our fees 09:23:02
20 aren't competitive, we'll lose customers. Our goal 09:23:06
21 is to grow and prosper with our communities. We 09:23:08
22 know that to do this, our fees must be competitive. 09:23:12
23 Fourth, the conversion of our computer systems. 09:23:16
24 Now here we're taking the time to do it right. 09:23:18
25 We're beginning every discussion during this 09:23:20
20
1 transition by asking, what's in the best interest of 09:23:22
2 the customer? We're committed to the goal of 09:23:24
3 flawless execution, and if we do have some problems, 09:23:28
4 we'll fix them. Courteous service people will be 09:23:32
5 available to help customers through this transition. 09:23:34
6 Also, both companies are on schedule to meet 09:23:38
7 their year 2000 plan, and the merger will not change 09:23:40
8 this course. We will not combine any systems until 09:23:44
9 we believe we're year 2000 compliant. 09:23:46
10 Fifth, community lending and contributions. 09:23:50
11 Norwest has been and will continue to be, as part of 09:23:52
12 the combined company, a leader in community lending 09:23:56
13 in each of the markets in which we serve. We're 09:24:00
14 proud of our performance. Two years ago Norwest 09:24:02
15 Banks, holding more than three quarters of our 09:24:04
16 banking assets, were rated outstanding for their 09:24:08
17 performance under the Community Reinvestment Act by 09:24:10
18 the office of the controller of the currency, and 09:24:12
19 the remaining office has received satisfactory 09:24:16
20 ratings. Last year we loaned and invested almost 09:24:18
21 $12 billion in qualified community development loans 09:24:22
22 and investments to low and moderate income families, 09:24:26
23 to small businesses or small farms. Our banks in 09:24:28
24 North and South Dakota, Iowa, Colorado, the Twin 09:24:32
25 Cities, greater Minnesota and Nebraska, are the 09:24:36
21
1 number one S.B.A. lenders in their states. Our 09:24:38
2 Arizona bank, for example, is number one among all 09:24:40
3 banks in that state in the percent of loans made to 09:24:44
4 small businesses with gross annual revenues of less 09:24:46
5 than one million dollars. We're the number one ag 09:24:50
6 lender in the Midwest, the Rocky Mountains, and the 09:24:52
7 Southwest, and number three nationally, and will 09:24:56
8 become the number one nationally when we do combine 09:24:58
9 with Wells Fargo. Thirteen and a half percent of 09:25:02
10 Norwest's assets are invested in qualified community 09:25:06
11 development loans and investments. There are few 09:25:10
12 other large financial services companies that can 09:25:12
13 even come close to that performance. 09:25:14
14 Now, our goal is to continue to be a national 09:25:16
15 leader in community lending and development. We 09:25:20
16 want to make sure these loans and investments for 09:25:22
17 where they'll deliver the greatest value that is in 09:25:26
18 the individual local communities. One by one, we've 09:25:30
19 been asked by some to make large, nationwide 09:25:32
20 commitments. Our total lending and investment in 09:25:34
21 any state where we have banks already is large, but 09:25:38
22 it is also local. Our practice has been to set 09:25:40
23 local goals rather than corporate-wide goals because 09:25:44
24 we believe the best community investment decisions 09:25:46
25 are made in local communities by community bankers 09:25:50
22
1 working with local community groups. We believe our 09:25:52
2 philosophy of local community decision-making has 09:25:56
3 served our communities and our customers very well. 09:26:00
4 For example, over the past seven years our community 09:26:04
5 home ownership program has provided more than $670 09:26:06
6 million in mortgage loans to nearly 13,000 low to 09:26:10
7 moderate income home buyers in 15 states. Each of 09:26:14
8 these programs is designed and managed locally. Due 09:26:18
9 to the Norwest Housing Foundation, Norwest Mortgage 09:26:22
10 has pledged $16 1/2 million over the next five
11 years, one of the largest donations ever, to Habitat
12 for Humanity.
13 We've also reached out to underserved 09:26:34
14 communities. One example is the Navajo nation. 09:26:36
15 Between 1994 and 1996, we invested $4 million to 09:26:40
16 build four new banking stores in the Navajo nation, 09:26:42
17 each designed by a Navajo architect. Over 90 09:26:46
18 percent of the staff of these banks are Navajo; so 09:26:50
19 are the consumer managers of all of these stores. 09:26:54
20 Our consumer loans on the Navajo nation tripled in 09:26:56
21 four years to almost $6 million. We created a $22 09:27:00
22 million partnership with Norwest Mortgage and the 09:27:02
23 federal government to build almost 300 homes in the 09:27:04
24 Navajo nation. We also created a program to loan up 09:27:08
25 to $25 hundred each to Navajos with little or no 09:27:10
23
1 credit history who take courses in personal money 09:27:14
2 management. 09:27:18
3 Another example is right here in the Midwest. 09:27:18
4 Norwest Mortgage has launched a program in South 09:27:20
5 Dakota, North Dakota, and Nebraska, to reduce loan 09:27:22
6 approval time for American Indians living on 09:27:24
7 allotted trust land. 09:27:28
8 Six is local decision-making, the role of our 09:27:30
9 corporate headquarters. The decision to move our 09:27:34
10 corporate headquarters was the most difficult 09:27:36
11 decision we had to make. This decision was driven 09:27:38
12 by the need to locate our headquarters closest to 09:27:40
13 the highest concentration of banking deposits, which 09:27:42
14 is in California, by a factor of almost four times 09:27:46
15 that of Minnesota. But I can assure you, the 09:27:48
16 decision to move our corporate headquarters will 09:27:52
17 have absolutely no effect on our commitment to local 09:27:54
18 decision-making in each of our communities. Our 09:27:58
19 business philosophy in the combined company will 09:28:00
20 continue to be based on this principle. Local 09:28:02
21 decision-making is the key to serving our 09:28:06
22 communities effectively because we believe the best 09:28:08
23 decisions are local decisions. Decisions at the 09:28:10
24 local level at Norwest are made by people we trust, 09:28:12
25 people who know our communities better than anyone 09:28:16
24
1 else, the people who live and work in their 09:28:18
2 communities and who have firsthand knowledge of what 09:28:20
3 really matters there. And to a centralized company 09:28:22
4 such as Norwest, what matters is not where our 09:28:28
5 corporate headquarters is but how we serve our 09:28:30
6 customers locally one at a time when they walk into 09:28:32
7 any one of our 4,000 stores, half of which, by the 09:28:36
8 way, are located in smaller communities, many with 09:28:38
9 less than 50,000 people in them. 09:28:40
10 Let me give you an example. We bought United 09:28:44
11 Banks of Colorado in 1991. It was the state's 09:28:46
12 largest bank. We closed its corporate headquarters, 09:28:50
13 but as we do in all of our banking states, we kept 09:28:50
14 local decision-making in each of our Colorado 09:28:54
15 markets. Today we're the number one bank in 09:28:56
16 Colorado, an outstanding corporate citizen, a leader 09:28:58
17 in the community, and the generous supporter of 09:29:00
18 hundreds of nonprofit organizations in that state. 09:29:04
19 The president of Colorado Bank, John Nelson, is 09:29:06
20 chairman of the board of the Denver United Way, and 09:29:08
21 his bank has been named Colorado's best by the 09:29:12
22 Colorado Business Journal. It is only one of five 09:29:14
23 businesses in the nation recognized by the U.S. 09:29:18
24 Labor Department for hiring, training and promoting 09:29:20
25 women and people of color. Here in Minnesota, Jim 09:29:24
25
1 Campbell, who's been with Norwest 34 years, who has 09:29:26
2 run our Twin Cities market for over a decade, is 09:29:28
3 staying here. He and his team will continue to call 09:29:32
4 the shots here. Jim is the chairman of the United 09:29:34
5 Way Campaign for the Minneapolis area this year. 09:29:38
6 These are just two examples of what we see across 09:29:40
7 Norwest. 09:29:42
8 I want to thank you for the opportunity to 09:29:44
9 speak on behalf of Norwest this morning. I also 09:29:46
10 want to thank all of the concerned citizens on both 09:29:48
11 sides of this proposed merger who took the time to 09:29:52
12 attend this meeting today. Thank you. 09:29:54
13
14 CHAIRPERSON SMITH: Questions from the 09:29:58
15 panel?
16
17 MS. AWAI: Thank you. As you know the 09:29:58
18 Board is required to consider the effects of the 09:30:00
19 proposal on the convenience and needs of the 09:30:02
20 communities to be affected. This consideration will 09:30:04
21 take into effect both Wells' and Norwest's record of 09:30:08
22 performance on the Community Reinvestment Act. 09:30:12
23 You've alluded to a best practices approach in 09:30:14
24 determining which types of program will be retained. 09:30:20
25 At this point are you able to identify any of these 09:30:22
26
1 programs? 09:30:24
2 The other question that I had has been raised 09:30:26
3 by many of the written commentors, which we have had 09:30:28
4 an opportunity to review. Those commentors are 09:30:32
5 concerned that the proposed merger may result in a 09:30:34
6 decrease in services in rural communities. Could 09:30:38
7 you address both of those? 09:30:42
8
9 MR. HAZEN: I'll start off with the first 09:30:46
10 one. In terms of best practices, we obviously have 09:30:46
11 exchanged information and looked at the things that 09:30:50
12 both of our companies have done in terms of programs 09:30:52
13 that we can reach, and I, in my comments, spoke 09:30:58
14 specifically, for example, in the fact that in small 09:31:02
15 farming communities, Norwest has done a lot more 09:31:04
16 than Wells Fargo, whereas still Wells Fargo does 09:31:08
17 serve a lot of farming communities throughout its 09:31:12
18 geographic territories. So we will adopt a lot of 09:31:16
19 things that Norwest has been able to do there. 09:31:18
20 I think our small business programs for 09:31:22
21 specific groups which I mentioned, for example women 09:31:26
22 and Latinos and African-Americans, is something that 09:31:30
23 Norwest has been less focused, and we can continue 09:31:36
24 to combine that. Those would be examples of best 09:31:40
25 practices across both companies where we can share 09:31:42
27
1 it in the combined company. 09:31:48
2
3 MR. BILLER: Regarding the question about 09:31:50
4 rural communities, we don't see any reduction in 09:31:50
5 services in rural communities. It's been kind of a 09:31:54
6 hallmark of Norwest to be operating in smaller 09:31:58
7 communities. We think we know how to do that well 09:32:00
8 and profitably, and we would expect to continue to 09:32:02
9 do that. 09:32:04
10
11 CHAIRPERSON SMITH: Any other questions? 09:32:08
12 If not, thank you very much for being here this 09:32:10
13 morning. 09:32:12
14 And we'll move on to Panel No. 1. We're going 09:32:12
15 to start with Mr. Jacobson. 09:33:20
16