Wells Fargo cuts 3,800 jobs in fallout from Wachovia merger

McClatchy reports:

In the latest fallout from its Wachovia merger, Wells Fargo & Co. said Wednesday that it's closing its 638 Wells Fargo Financial stores and slashing 3,800 jobs in the consumer finance unit that made higher-rate mortgage, auto and credit card loans.

The San Francisco-based bank also said it will stop originating subprime mortgage loans that it keeps in its own portfolio. Higher-rate loans to borrowers with poor credit have been blamed for playing a central role in the nation's financial crisis.