Wells Fargo lending units to combine

AP News
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Posted: Dec 14, 2009 6:06 PM

Wells Fargo & Co. said Monday it will combine its various lending operations into one unit, including business it acquired through its purchase of Wachovia Corp. late last year.

The new organization, called Wells Fargo Capital Finance, will include Wachovia Capital Finance, Wells Fargo Business Credit, Wells Fargo Foothill, Wells Fargo Retail Finance, and Wells Fargo Trade Capital.

The unit will provide traditional asset-based lending, specialized senior secured financing, accounts receivable financing and purchase order financing to companies nationwide. The 1,700-employee unit will oversee more than $27 billion in outstanding loans.

Peter Schwab, head of Wells Fargo Capital Finance, said combining the businesses under the new unit is "an important step in our successful integration with Wachovia."

San Francisco-based Wells Fargo acquired Wachovia after the Charlotte, N.C.-based bank crumbled under the weight of shaky mortgage loans and other bad bets on the housing industry.

Shares of Wells Fargo rose 8 cents to close at $25.49.