As a result of the financial crisis that rippled through the U.S. economy in 2008/2009, bank failure rates soared. The FDIC was able to identify many of the troubled banks, seize them and transfer their assets to healthy institutions successfully. However, the crisis did create a climate in which healthy banking institutions saw an opportunity to merge with and/or acquire competing banks. Like all well planned mergers, the acquiring bank realized that synergies would result by combining the assets and capabilities of the two institutions. One well publicized merger was the acquisition of Wachovia (well know in the Eastern US) by Wells Fargo Bank (a California based bank). Wells Fargo obviously saw many synergies and advantages in this acquisition.
This assignment is worth 45 points toward your course grade. I will grade this assignment on the basis of how well you fulfill the assigned questions, how well you show that you understand the chapter terms and ideas, and your consideration of additional perspectives (including your own). Refer to the following table to understand how this assignment will be graded:
|Use of Terms and Ideas Learned; Consideration of different perspectives