Norwest Corporation and Subsidiaries - Page 119

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               commercial banking industry between 1986 and 1991 on                   
               routine data processing implementation.  Norwest, as a                 
               result of the work performed within the claim, developed               
               no approaches or components that were conceptually or                  
               fundamentally different from those already in use within               
               the banking industry.                                                  
               In its report, the Tower Group stated that nothing Norwest             
          developed could be considered unique because Norwest already                
          possessed the necessary information.54  The Tower Group report also         
          stated that three factors determine whether a banking software              
          application is unique:  Product (e.g., checking account, credit             
          card), channel (e.g., bank branch, ATM), and volume.  Mr. Teixeira          
          asserted that Norwest did not offer any products or services that           
          were unavailable in the banking industry, and the volume of                 
          transactions was  typical  of  banks  of  Norwest's  size.55                
          Consequently, Mr. Teixeira insisted that Norwest had numerous               
          sources from which it could learn about software applications, and          
          that any uncertainties Norwest faced were unique to it but not to           
          the banking industry.56                                                     

               54   According to Mr. Teixeira, the sources of this                    
          information are vendors, consultants, conferences, and                      
          newsletters.                                                                
               55   Mr. Teixeira stated that Norwest was never a top 15               
          bank (in terms of asset value) but fluctuated between 17th and              
          33d.  Banks such as Citibank, Chase Manhattan, Wells Fargo, and             
          Security Pacific were all two to three times larger than Norwest.           
          Citibank had total assets of approximately $220 billion in 1991,            
          while Norwest's total assets reached approximately $40 billion in           
          1991.  In this regard, Norwest's transactional volumes never                
          reached the levels of the larger banks'.                                    
               56   Mr. Teixeira opined that, on the basis of the channels,           
                                                             (continued...)           



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