Wells Fargo & Co. is exploring the sale of its asset management unit, a business that could fetch more than $3 billion, according to a person briefed on the matter.
The bank, which has been reviewing its strategy, began discussing a possible deal with other asset managers and private equity firms last month, according to the person, who said a divestment isn’t certain. Wells Fargo expects to receive bids on the unit this month, said the person, who asked not to be identified because the talks are private.
Chief Executive Charlie Scharf, who took over last October, is preparing to lay out his vision for turning around the lender after scandals under his predecessors. He told analysts this month he’s exploring a wide range of options and that he would provide more information to investors in January. The company’s stock has slumped 57% this year.
A Wells Fargo spokesperson declined to comment. The discussions were reported by Reuters earlier Thursday.
Asset management has seen a wave of consolidation in recent years with banks bulking up their divisions to run them more efficiently, or selling them to rivals eager to grow trillion-dollar franchises. They’re reacting to a squeeze on fees from cutthroat competition and a shift to passive fund management.
The pressure on small and midsize managers comes from the very top of the industry, which is dominated by index fund giants BlackRock Inc. and Vanguard Group.
Among major U.S. banks, Wells Fargo’s business is a medium-size player, with $607 billion in assets under management at the end of September. Morgan Stanley’s purchase of Eaton Vance, announced this month, will vault it into club of asset managers with $1 trillion in client assets, joining JPMorgan Chase & Co. and Goldman Sachs Group Inc. Rivals including Citigroup Inc. and Bank of America Corp. don’t have major presences in that business.
The firm's CFO and EVP of Wealth Management Solutions are the latest executives to exit the broker-dealer.
Clients are saying they would consider switching advisors if another professional offered estate planning services, according to a new Trust & Will survey.
CEO Laurel Taylor says the fintech's composable AI stack helps workers optimize dollars across Trump Accounts, 529s, 401(k)s, and other employee benefits.
The bank has swiped three private banking veterans from BNY as the city climbs the ranks of America's fastest-growing wealth hubs.
Employee accounts, crypto trials and job cuts frame a pivotal year for the Swiss lender.
Dan Biagini of American Equity says the steady decline of pensions, longer lifespans and a reset in interest rates are rewriting how advisors build retirement income
Direct indexing is on pace to outgrow ETFs and mutual funds. Northern Trust's Ken Lassner explains why the advisors who get it wish they had started sooner.
