Tools For The New Global Trade Environment Harold ‘Lynn” Vann Vice President & Business Banking Manager Wells Fargo Bank, Northern California Dan Frank

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  • Tools For The New Global Trade Environment Harold Lynn VannVice President & Business Banking Manager Wells Fargo Bank, Northern California Dan FrankVice President, Product ManagerWells Fargo Bank, NA

  • New Environment, New ChallengesTrade in hard goodsTrade in content/servicesLimited transparencyHigh transparency (maybe)Few large transactionsMany small transactionsFocus on logisticsFocus on the businessStable/growing dollarDeclining dollar

  • Assembling The Global Trade Financial ToolkitOne size does not fit allAssemble a package of services tailored to the needs of your business, selecting from the following areas:CreditTrade financeRisk managementForeign ExchangePayments and collectionsForeign currency instruments

  • 1997 New branch offices in Hong Kong and Taipei offer L/Cs and Asia Business Direct Wells Fargo International Banking History2000International online capabilities with the introduction of CEO and FXOL

    2005Wells Fargo becomes only US bank to be part of Connector Bank network 2002Wells Fargo celebrates 150 years2007Wells Fargo opens new office in London to facilitate European business 1995 Wells Fargo & HSBC form Wells Fargo HSBC Trade Bank joint venture to support US exporters/importers

  • Wells Fargo Trade ServicesWells Fargo HSBC Trade Bank, a joint venture with Wells Fargo and the HSBC Group, is the only nationally chartered bank in the US dedicated exclusively to international tradeServices include trade finance, government-guaranteed loans, foreign accounts receivable purchasing, and risk mitigation, as well as the full range of foreign exchange servicesMany services available through Trade Services Online portalFacts:#1 in number of deals with Ex-Im Bank Working Capital Guarantee Program for the last two years*Open bank accounts and move money globally in over 80 countries Facilitate trade and provide customer contacts in over 80 countries and territoriesManage cross border risk with offices across the US in 13 cities*Ex-Im Bank, official export credit agency of the US. As of 12/31/06

  • Wells Fargo Foreign ExchangeAn FX Price Maker$20 billion daily in FX volume*3 trading floors (SF, MN, NY) and 15 sales offices2nd largest trading volume in US, 5th largest worldwideOffering a wide array of productsCurrency risk managementPayment servicesInvestment servicesCurrency exchange and travel moneyProviding superior service10,000+ FX transactions per day Overnight Trading, Operations and Online Services SupportLocal, expert relationship management from FX Specialists aligned to each customer segment we serve24x7 online access now available through Wells Fargos free Business Online Banking serviceNow Availableon BOB*Volume as measured on EBS interbank trading platform

    *Goods -> services = risk profile is different; traditional tools and approaches may not be appropriateTransparency = Easier discover of counterparties (thus lower barriers to entry), more unfamiliar counterparties (your counterparty may be a college student with a computer), more tools to reduce credit risk (e.g. credit reporting agencies online)Many small transactions = need to reduce underlying transaction cost, create efficiencies. True for both companies and their trade service vendors.Logistics->Business = Lower barriers to entry through outsourcing logistics functions. Cant just add value by trading; need to focus on fundamentals, including credit and cash flow.Dollar environment = greater need for hedging or holding balances, even for smaller business*One size doesnt fit all you need to put together the right package for your business, from these and other areasNote that these are all available online at Wells Fargo***Risk management: Forwards, options, customized hedging strategiesPayment services: FX wires and draft, foreign check conversions, international ACH to 14 countriesInvestment services: Forwards, Options, FX Time Deposits, EYD/CLD Deposits, Customized investment strategies