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After intense pressure in the media, Wells Fargo Bank has decided to cancel a highly publicized trip next month to Las Vegas for employees as part of a gambling excursion. Many charged the financial firm with misusing some $25 billion in taxpayer bailout money.
The 12-night trip was to commence this Friday. Rooms were booked at the Wynn Las Vegas and Encore Las Vegas hotels, two of the city's most high end properties.
The trip is an annual tradition at Wells Fargo with past events including a private Jimmy Buffett concert in the Bahamas for more than 1,000 of the company's top employees and guests. Top Wells Fargo loan officers, in previous year, were treated to performances by Cher, Jay Leno and Huey Lewis
Wells Fargo itself was considered among the most solvent banking institutions during the current financial crisis with minimal exposure to risky loans, however, last fall the company purchased troubled Wachovia Bank and has since received bailout funds. Initially the bank had declined government money for the Wachovia acquisition.
"In light of the current environment, we have now decided to cancel this event as well," the company said Tuesday night in a news release that also said that it had never planned to use taxpayer bailout money for the trip. The lender said it had already abandoned plans for other functions.
The San Francisco-based bank, which bought Wachovia on Dec. 31, was one of nine banks, including Bank of America and Citigroup, to receive funds in the first round of the Treasury's bailout.
After details of Wells Fargo's Las Vegas trip were reported, officials from that bank faced criticism from a number of public officials.
"Let's get this straight: These guys are going to Vegas to roll the dice on the taxpayer dime?" said Rep. Shelley Moore Capito, a West Virginia Republican who sits on the House Financial Services Committee. "They're tone-deaf. It's outrageous."
Wells Fargo reported a fourth-quarter loss of more than $2.8 billion and plans to cut some jobs at its Charlotte headquarters.
Currently, Wells Fargo and Wachovia Banks offer separate FDIC insurance up to applicable limits until the two banks finalize consolidation.
Jagajeet Chiba, Gambling911.com
