Wells Fargo considering sale of retirement-plan unit

The business could fetch as much as $1 billion, sources say

Nov 8, 2018 @ 9:13 am

By Bloomberg News

Wells Fargo & Co. is considering the sale of its retirement-plan services business, according to people familiar with the matter.

The unit could fetch as much as $1 billion, said one person, who asked to not be identified because the matter isn't public. The people said deliberations are at an early stage and the bank may decide to keep the business, which offers record-keeping, trust, custody and other retirement-plan services to corporations.

A representative for Wells Fargo declined to comment on the potential sale.

Wells Fargo, the third-largest U.S. bank by assets, has been unloading business lines this year amid an enterprise-wide review following a string of consumer scandals. The company's problems erupted in 2016 after the revelation that employees created as many as 3.5 million accounts on behalf of customers who didn't want them. In February, the Federal Reserve banned Wells Fargo from growing assets past their December 2017 level until the bank rights its missteps.

Wells Fargo has agreed to sell its branches in three Midwestern states, as well as businesses including its Puerto Rico auto lender and a payroll services unit. It's weighing a sale of real estate brokerage Eastdil Secured, a person familiar with the matter said in July.

The retirement-plan services business is part of Wells Fargo's wealth and investment-management division, which also includes the brokerage Wells Fargo Advisors and Abbot Downing, a wealth manager that caters to the ultra-rich.

Jonathan Weiss, who heads the bank's wealth and investment-management arm, has been working to streamline the unit since he took over last year. He is targeting around $600 million in savings by 2020, he said at the firm's investor day in May. In August, Mr. Weiss said he plans to hire an operations executive to review the unit's efficiency.

(More: Is the worst over for Wells Fargo Advisors?)

0
Comments

What do you think?

View comments

Recommended for you

Featured video

INTV

How InvestmentNews picks its Women to Watch winners

The process is laborious and exacting, but well worth it. The end result each year is an impressive group of women in the advice industry from whom others can draw inspiration.

Latest news & opinion

Some good news about female recruitment in financial advice

Each of four core advisory positions tracked in InvestmentNews' benchmarking study has seen an uptick in women entrants.

10 ETFs that are up more than 35% this year

Amid the stock market carnage, there are still some funds posting big gains.

10 biggest HSA providers rated

Morningstar rated the largest plan providers as investment and spending vehicles.

Morningstar: DOL fiduciary rule reduces inflows to mutual funds with high loads

With the measure's demise, will the SEC's advice reform sustain the momentum?

6 tax strategies for year-end planning

How to help clients maximize their wealth using specific tax strategies before the end of the year.

X

Hi! Glad you're here and we hope you like all the great work we do here at InvestmentNews. But what we do is expensive and is funded in part by our sponsors. So won't you show our sponsors a little love by whitelisting investmentnews.com? It'll help us continue to serve you.

Yes, show me how to whitelist investmentnews.com

Ad blocker detected. Please whitelist us or give premium a try.

X

Subscribe and Save 60%

Premium Access
Print + Digital

Learn more
Subscribe to Print