v2.4.0.6
Regulatory and Agency Capital Requirements
 3 Months Ended
Mar. 31, 2012
Regulatory and Agency Capital Requirements [Abstract]  
Regulatory and Agency Capital Requirements

The Company and each of its subsidiary banks are subject to regulatory capital adequacy requirements promulgated by federal regulatory agencies. The Federal Reserve establishes capital requirements, including well capitalized standards, for the consolidated financial holding company, and the OCC has similar requirements for the Company's national banks, including Wells Fargo Bank, N.A.

We do not consolidate our wholly-owned trust (the Trust) formed solely to issue trust preferred and preferred purchase securities (the Securities). Securities issued by the Trust includable in Tier 1 capital were $6.6 billion at March 31, 2012. Since December 31, 2011, we have redeemed $875 million of trust preferred securities (redeemed on April 13, 2012). Under applicable regulatory capital guidelines issued by bank regulatory agencies, upon notice of redemption, the redeemed trust preferred securities no longer qualify as Tier 1 Capital for the Company. This redemption is consistent with the Capital Plan the Company submitted to the Federal Reserve Board and the actions the Company previously announced on March 13, 2012.

       Certain subsidiaries of the Company are approved seller/servicers, and are therefore required to maintain minimum levels of shareholders' equity, as specified by various agencies, including the United States Department of Housing and Urban Development, GNMA, FHLMC and FNMA. At March 31, 2012, each seller/servicer met these requirements.

Certain broker-dealer subsidiaries of the Company are subject to SEC Rule 15c3-1 (the Net Capital Rule), which requires that we maintain minimum levels of net capital, as defined. At March 31, 2012, each of these subsidiaries met these requirements.

       The following table presents regulatory capital information for Wells Fargo & Company and Wells Fargo Bank, N.A.

 

                
                
     Wells Fargo & Company Wells Fargo Bank, N.A. Well- Minimum
     Mar. 31, Dec. 31, Mar. 31, Dec. 31, capitalized capital
(in billions, except ratios)  2012  2011  2012  2011 ratios (1) ratios (1)
Regulatory capital:            
Tier 1$ 117.4  114.0  93.3  92.6    
Total  150.8  148.5  117.8  117.9    
                
Assets:            
Risk-weighted$ 996.8  1,005.6  921.2  923.2    
Adjusted average (2)  1,256.6  1,262.6  1,116.7  1,115.4    
                
Capital ratios:            
Tier 1 capital  11.78% 11.33  10.13  10.03  6.00  4.00
Total capital  15.13  14.76  12.79  12.77  10.00  8.00
Tier 1 leverage (2)  9.35  9.03  8.36  8.30  5.00  4.00
                
                

  • As defined by the regulations issued by the Federal Reserve, OCC and FDIC.
  • The leverage ratio consists of Tier 1 capital divided by quarterly average total assets, excluding goodwill and certain other items. The minimum leverage ratio guideline is 3% for banking organizations that do not anticipate significant growth and that have well-diversified risk, excellent asset quality, high liquidity, good earnings, effective management and monitoring of market risk and, in general, are considered top-rated, strong banking organizations.