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Wall Street Roundup

Wells Fargo buys Flatiron Credit

May 02, 2008|From Times Wire Services

Wells Fargo & Co., the biggest bank on the West Coast, acquired Flatiron Credit Co. on Thursday as part of a plan to boost insurance-related revenue.

Flatiron, based in Denver, finances insurance premiums, helping customers pay for coverage over time.

Terms weren't disclosed.

Wells Fargo, based in San Francisco, is adding to an insurance business in which growth outpaces the bank's total sales.

Chief Executive John Stumpf told investors this week that insurance was a "big growth" area and said the bank planned to make acquisitions and add products to the unit.

Insurance revenue at Wells Fargo rose 26% in the fourth quarter to $504 million, while total sales increased 12% to $10.6 billion.

Wells Fargo shares rose $1.43, or 4.8%, to $31.18.

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