Wells Fargo & Company (WFC) 10-Q 2008 Q2 Quarterly report

EXHIBIT 12
WELLS FARGO & COMPANY AND SUBSIDIARIES
COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES

			Quarter		Six months
	ended June 30,				ended June 30,
(in millions)	2008		2007		2008		2007
Earnings including interest on deposits (1):
Income before income tax expense	$	2,587	$	3,444	$	5,660	$	6,644
Fixed charges		2,330		3,432		5,478		6,616
	$	4,917	$	6,876	$	11,138	$	13,260
Fixed charges (1):
Interest expense	$	2,269	$	3,377	$	5,358	$	6,506
Estimated interest component of net rental expense		61		55		120		110
	$	2,330	$	3,432	$	5,478	$	6,616
Ratio of earnings to fixed charges (2)		2.11		2.00		2.03		2.00
Earnings excluding interest on deposits:
Income before income tax expense	$	2,587	$	3,444	$	5,660	$	6,644
Fixed charges		1,267		1,491		2,821		2,818
	$	3,854	$	4,935	$	8,481	$	9,462
Fixed charges:
Interest expense	$	2,269	$	3,377	$	5,358	$	6,506
Less interest on deposits		1,063		1,941		2,657		3,798
Estimated interest component of net rental expense		61		55		120		110
	$	1,267	$	1,491	$	2,821	$	2,818
Ratio of earnings to fixed charges (2)		3.04		3.31		3.01		3.36

(1)

As defined in Item 503(d) of Regulation S-K.

(2)

These computations are included herein in compliance with Securities and Exchange Commission regulations. However, management believes that fixed charge ratios are not meaningful measures for the business of the Company because of two factors. First, even if there was no change in net income, the ratios would decline with an increase in the proportion of income which is tax-exempt or, conversely, they would increase with a decrease in the proportion of income which is tax-exempt. Second, even if there was no change in net income, the ratios would decline if interest income and interest expense increase by the same amount due to an increase in the level of interest rates or, conversely, they would increase if interest income and interest expense decrease by the same amount due to a decrease in the level of interest rates.