What are Medium-Term Notes, Series K, Securities Linked to the Russell 2000® Index?

These are debt securities issued by Wells Fargo that have a maturity of one year (July 2, 2013). Their return or value is tied to the performance of the Russell 2000® Index, a broad index of small-cap U.S. equities. The specific terms dictating how the index performance affects the note's payout are detailed in the 'Form of Medium-Term Notes, Series K' exhibit.

Why is Wells Fargo issuing these notes?

Issuing structured notes like these allows Wells Fargo to offer a range of investment products to its clients. These notes can appeal to investors seeking potential returns linked to equity market performance while potentially offering different risk-return profiles compared to direct equity investments or traditional fixed-income securities.

What is the risk for investors holding these notes?

The primary risk for investors is the potential for losses if the Russell 2000® Index underperforms. The specific payout structure, which would be detailed in the Note itself, will outline how the index's performance affects both the potential interest payments and the repayment of principal. Investors are also exposed to the credit risk of Wells Fargo itself.

Where can I find the detailed terms and conditions of these notes?

The detailed terms and conditions for the Medium-Term Notes, Series K, Securities Linked to the Russell 2000® Index due July 2, 2013, can be found in Exhibit 4.1 ('Form of Medium-Term Notes, Series K, Securities Linked to the Russell 2000® Index due July 2, 2013') filed with this 8-K report.

WELLS FARGO & COMPANY/MN 8-K SEC Disclosure

Summary

This filing on July 2, 2012, by Wells Fargo & Company concerns the issuance of new debt securities. Specifically, the company is reporting the terms of its Medium-Term Notes, Series K, which are linked to the performance of the Russell 2000® Index and mature on July 2, 2013. The report includes the form of the note itself and legal opinions from external counsel regarding the issuance. For investors, this 8-K primarily serves as a notification and provides the documentation related to a specific debt offering. The key takeaway is that Wells Fargo has issued a structured note product, indicating a strategy to offer diversified investment options. Investors interested in this specific note would need to refer to the form of the note (Exhibit 4.1) for detailed terms, including how the Russell 2000® Index performance impacts returns and principal repayment.

Key Highlights

1Wells Fargo & Company issued Medium-Term Notes, Series K, on July 2, 2012.
2The Notes are linked to the performance of the Russell 2000® Index.
3The maturity date for these Notes is July 2, 2013.
4The filing includes the form of the Medium-Term Notes, Series K.
5Legal opinions from Faegre Baker Daniels LLP and Sullivan & Cromwell LLP regarding the Notes are part of the filing.
6This issuance is related to a Registration Statement on Form S-3 previously filed by Wells Fargo.

WELLS FARGO & COMPANY/MN 8-K Report, Exhibit Filing (Jul 2, 2012)

Summary

Key Highlights

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