Show me the money, cynical advisers say about Wells Fargo re-brand
Advisers are likely to welcome Wells Fargo Securities LLC's plans to build up its investment-banking business, but they are likely to have a “show me the money” attitude when management promises such changes, according to recruiters and analysts.
Advisers are likely to welcome Wells Fargo Securities LLC’s plans to build up its investment-banking business, but they are likely to have a “show me the money” attitude when management promises such changes, according to recruiters and analysts.
This morning, Wells Fargo & Co. of San Francisco announced that it was re-branding the investment-banking and capital markets business formerly operating under the Wachovia Securities and various Wells Fargo brands.
Wells Fargo acquired Wachovia Corp. of Charlotte, N.C., on Jan 1.
“Clearly, one of the great benefits of the Wachovia merger was the strong investment-banking and capital markets platform that we gained. We plan to build on those strengths to grow and invest in the business as we continue to satisfy all of our customers’ financial needs,” John Stumpf, Wells Fargo’s president and CEO, said in a statement.
Even so, “the average broker is cynical about this,” said Danny Sarch, a recruiter based in White Plains, N.Y.
The bank will stress debt and equity underwriting, mergers and acquisitions, loan syndications, debt and equity sales and trading, municipal securities and some derivatives, according to published reports.
Wells Fargo’s plan to expand its investment-banking reach makes sense, said Alois Pirker, senior analyst with Aite Group LLC of Boston.
“It’s a logical step. Brokers will welcome having access to initial public offerings for their wealthy clients,” he said.
Wells Fargo Advisors is one of the largest retail-brokerage sales forces in the country, with 15,688 registered reps across a variety of channels.
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