Wells Fargo & Co. has decided to shut down its 638 lending offices, which are established throughout the world. This big decision of the bank will make nearly 4000 employees redundant.

After J.P. Morgan Chase & Co. and Bank of America, Well Fargo is the third largest bank in U.S. dealing with stock market securities.

The bank deals in credit cards facilities, gives easy loans to the customers and advance credits.

The sources informed that out of the 638 branches, which will be closed, 74 are situated in California.

David Kvamme, who is the President of the bank, informed that even if they are closing some units of their bank, there will not be any kind of deficiency in their services.

They will continue to advance loans and credits to the poor people through its nationwide branches.

However, the bank will discontinue providing subprime mortgages.

He also said, "We know that this decision will be extremely difficult for those dedicated team members and their families who will be affected”.

But it has been noticed that the Wells Fargo is not the first bank, which is closing down its units. HSBC Bank also locked down its subprime office that was providing financial services in the United States.

HSBC expanded its activities by acquiring Household Finance Corporation, six years ago.