MARY COCHRANE GIVES THE DETAILS ON WELLS FARGO AND BERKSHIRE HATHAWAY

In the United States, Berkshire Hathaway is the largest publicly-traded holding company; it owns numerous insurance companies, manufacturing businesses, retailers, and other companies.

WFC Holdings is part of the SEC orgnaization of Wells Fargo & Co.; Wells Fargo & Co/MN, Wells Fargo Bank NA, …

What is a holding company?
Firm that owns other companies’ outstanding stock.

It usually refers to a company which does not produce goods or services itself; rather, its only purpose is owning shares of other companies.

Holding companies allow the reduction of risk for the owners and can allow the ownership and control of a number of different companies. In the U.S., 80% or more of stock, in voting and value, must be owned before tax consolidation benefits such as tax-free dividends can be claimed.[1]

Sometimes a company intended to be a pure holding company identifies itself as such by adding “Holdings” or “(Holdings)” to its name, as in Sears Holdings.

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Wells Fargo & Co. is the parent as far as reporting money through the organization.

What is a Parent Company?
Parent company owns enough voting stock in another firm (subsidiary) to control management and operations by influencing or electing its board of directors.

A parent company could simply be a company that wholly owns another company. This would be known as a “wholly owned subsidiary.”

A lone company may not be called a subsidiary of any organization.

The parent company does ot have to be larger or more powerful entity. The parent company may be smaller than a subsidairy, and do not have to operate in the same locations, or the same businesses and conceivable could be competitors in the markeplace!

Note: Because a parent company and a subsidiary are separate entities, it is entirely possible for one of them to be involved in legal proceedings, bankruptcy, tax delinquency, indictment and/or under investigation, while the other is not!

The most common way that control of a subsidiary is achieved is through ownership of shares in the subsidiary of the parent. The shares give the parent control.

A subsidiary may itself have subsidiaries.

For example, Wells Fargo & Co. is a parent and all of its subsidiaries together are called a group. Group can also apply to cooperating companies and their subsidiareis with varying degress of shared ownership.

It’s all about the agreements!

Subsidairies are separate, distintct legal entities for the purposes of taxation and regulation. For this reason they differ from division, which are businesses fully integrated within the main company, and not legally or otherwise distinct from the main company.

Berkshire Hatay Inc. listing of subsidairies:
http://www.berkshirehathaway.com/subs/sublinks.html

A non-operating subsidairy would exist on paper only (i,.e. stocks, bonds, articles of incorporation) and would use the identy and rolling stock of the parent company.

Control of subsidiary generally includes both practical and theoretical control and of course is defined in the agreements.

DTCC is the ‘holding company’ for DTC (1973) and NSCC (1976).

That’s better found the definition: http://encyclopedia.thefreedictionary.com/Depository+Trust+%26+Clearing+Corporation

The Depository Trust & Clearing Corporation (DTCC), based primarily at 55 Water Street in New York City, is the world’s largest post-trade financial services company. DTCC was established in 1999 as a holding company to combine The Depository Trust Company (DTC) and National Securities Clearing Corporation (NSCC). It was set up to provide an efficient and safe way for buyers and sellers of securities to make their exchange, and thus “clear and settle” transactions. It also provides central custody of securities.

User-owned [1] and directed, it automates, centralizes, standardizes, and streamlines processes that are critical to the safety and soundness of the world’s capital markets. Through its subsidiaries, DTCC provides clearance, settlement, and information services for equities, corporate and municipal bonds, unit investment trusts, government and mortgage-backed securities, money market instruments, and over-the-counter derivatives. DTCC is also a leading processor of mutual funds and insurance transactions, linking funds and carriers with their distribution networks. DTCC’s Depository Trust Company (DTC) provides custody and asset servicing for 3.5 million securities issues, mostly stocks and bonds, from the United States and 110 other countries and territories, valued at $40 trillion, more than any other depository in the world.

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