Nevadans await merger details

Wells Fargo and Norwest bank officials in Nevada have yet to work out key details of their merger, including which branches will be closed or sold, and which services will be offered.

As a condition of merging, federal regulators are likely to require the combined bank to sell some assets, said Laura Schulte, executive vice president of Northern Nevada Community Banking for Norwest.

"I would expect because of the market density that there will be some divestiture," Schulte said Monday.

However, Schulte added, "we don't plan or foresee any significant loss of employees, or significant layoffs."

As far as which branches will be sold or closed, that's anybody's guess right now, officials said. Ditto for services offered by one bank but not the other, such as Norwest's check guarantee card.

"There haven't been any decisions made around that yet," Schulte said.

The banks will cut their work force primarily through attrition, Schulte said, and to that end, Norwest has ordered a hiring freeze.

Wells Fargo and Norwest Monday announced a $34 billion merger, creating a bank -- to be called Wells Fargo -- with $191 billion in assets, more than 90,000 employees, and approximately 20 million customers.

The merger, officials said, will create the largest bank in Nevada, with a combined $6.9 billion in loans and other assets, officials said. In the Las Vegas area, Norwest operates 29 branches, Wells Fargo 53.

Bank of America, currently the largest bank in Nevada, has about $4.5 billion in statewide assets, said Paul Stowell, a Bank of America spokesman.

Stowell conceded that, on its face, the merger would create a bank with more Nevada assets than Bank of America. But the ultimate size of the new Wells Fargo's Nevada assets will likely go down with divestiture, he said.

"The divestiture issue will be the $64,000 question, once it's all said and done," Stowell said.

Officials called the merger "a huge win" for customers of both banks.

"All in all we combine the best of everything and give our customers a lot greater service and capacity," Schulte said.

Officials acknowledged that combining Norwest's personal touch with Wells Fargo automation and efficiency might not be easy.

"We will not put into place the 800-number philosophy," Schulte said.

The combined bank will also continue its commitment to community investment, she said.

"We're going to continue to invest in the community," Schulte said.

On this front, at least, the combined bank can expect to catch some flak. Gail Burks of the non-profit group Nevada Fair Housing Center criticized the community investment records of both banks Monday.

Wells Fargo's practice of opening sub-branches in grocery stores doesn't meet the banking needs of low-income people, Burks said. And Norwest Mortgage, which claims to be the largest home lender in Las Vegas, has not met the needs of low-income home buyers, she said.

Schulte defended the community investment records of both banks.

"Both organizations today have outstanding (Community Reinvestment Act) ratings, and we would expect that to continue," Schulte said.

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