Wells Fargo weighs changes to wealth unit

Wells Fargo weighs changes to wealth unit
The move would reflect the bank's effort to cut $4 billion in costs.
JUN 19, 2018

Wells Fargo & Co. is considering restructuring its wealth management business as the bank pushes for $4 billion in cost cuts by the end of next year. "Our wealth and investment-management group is reimagining our business to become more efficient," spokeswoman Shea Leordeanu said in an emailed statement. "Whatever the outcome, we will continue to serve our clients across multiple channels." The bank may trim about 1,000 jobs through attrition and cut 100 regional managers, the Wall Street Journal reported late Monday, citing sources it didn't identify. No final decisions have been made, Ms. Leordeanu said in the statement. Overhauling the wealth management unit would mark the latest cost-cutting effort by the bank, which has seen expenses climb in recent years amid regulatory fines and higher legal costs stemming from a fake-account scandal that exploded in 2016. Wealth management head Jon Weiss said at the firm's investor day last month that the unit is targeting around $600 million in savings by 2020. (More: Wells Fargo sees slowdown in advisers exiting this year)

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