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
By  Bloomberg

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)

Latest News

Which wealth management teams are the best?
Which wealth management teams are the best?

Entries for InvestmentNews' 5-Star Wealth Management Teams close next week

Emigrant Partners takes minority stake in Novare Capital Management
Emigrant Partners takes minority stake in Novare Capital Management

The strategic PE investor is bolstering its presence in North Carolina through a partnership with the $1.8 billion RIA.

SEC bars faith-based advisor who sold phony promissory notes
SEC bars faith-based advisor who sold phony promissory notes

The advisor “failed to disclose multiple conflicts of interest and misappropriated client assets," the SEC said.

Commodities are booming but too risky for most clients, advisors say
Commodities are booming but too risky for most clients, advisors say

Commodity investments were among the biggest winners in 2024, but advisors remain wary of owning them in client portfolios.

Wamco revamps fixed income strategies as it fights to keep investing staff
Wamco revamps fixed income strategies as it fights to keep investing staff

The CEO says the besieged bond giant is "fine-tuning" its strategies and would soon start integrating back- and mid-office functions with its parent Franklin.

SPONSORED Three key trends that will drive advisors’ planning in 2025

AssetMark Group CEO explains why the great wealth transfer, succession planning, and personalization will be key for advisors in the new year.

SPONSORED Why RIAs might consider investing more in trust services

A trust delivery model not only increases the value of an advisor and a firm but is also a natural addition to any firm’s succession plan.