Wells Fargo considering sale of retirement-plan unit

Wells Fargo considering sale of retirement-plan unit
The business could fetch as much as $1 billion, sources say.
NOV 08, 2018
By  Bloomberg

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?)

Latest News

Advisor moves: LPL welcomes $750M Osaic team, Raymond James recruits Wells Fargo duo in New York
Advisor moves: LPL welcomes $750M Osaic team, Raymond James recruits Wells Fargo duo in New York

Elsewhere in Utah, Raymond James also welcomed another experienced advisor from D.A. Davidson.

UBS loses arbitration battle in fiduciary fight over foundation funds
UBS loses arbitration battle in fiduciary fight over foundation funds

A federal appeals court says UBS can’t force arbitration in a trustee lawsuit over alleged fiduciary breaches involving millions in charitable assets.

RIA moves: NorthRock adds $800M Parkside Advisors, NFP acquires Levine Group in Tennessee
RIA moves: NorthRock adds $800M Parkside Advisors, NFP acquires Levine Group in Tennessee

NorthRock Partners' second deal of 2025 expands its Bay Area presence with a planning practice for tech professionals, entrepreneurs, and business owners.

Three easy ways to boost your firm’s impact this summer
Three easy ways to boost your firm’s impact this summer

Rather than big projects and ambitious revamps, a few small but consequential tweaks could make all the difference while still leaving time for well-deserved days off.

Hightower taps Osaic alum Scott Hadley as first chief advisory officer, expands C-suite
Hightower taps Osaic alum Scott Hadley as first chief advisory officer, expands C-suite

Hadley, whose time at Goldman included working with newly appointed CEO Larry Restieri, will lead the firm's efforts at advisor engagement, growth initiatives, and practice management support.

SPONSORED How advisors can build for high-net-worth complexity

Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.