Sitemap WIM includes the Private Bank and Abbot Downing operations. 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. Chicago-based GTCR and New York-based Reverence did not respond to requests for comment. The news comes about a week after the bank said, several hundred financial advisors have been included, could be sold for over $3 billion, according to sources who spoke with, The unit’s restructuring plan was first reported by. Wells Fargo & Co is exploring a sale of its asset management business, in what would be the US bank's biggest shake-up since former Bank of New York Mellon chief executive officer (CEO) Charles Scharf joined as CEO last year, people familiar with the matter said on Thursday. Your Ad Choices Bank executives have signaled repeatedly that the worst of the fallout is in the past, but elevated operating losses have persisted. They have been cutting costs and shedding noncore businesses. The latest advisor headcount of 12,908 advisors is down 815, or 6%, from a year ago and 391, or 3%, from the prior quarter. The potential deal would illustrate how Scharf is looking at drastic moves, beyond cost cuts, as he seeks to turn Wells Fargo around following a years-old sales practices scandal. As of Sep 30, 2020, the company’s asset management division had about $607 billion under management. The US Federal Reserve has placed restrictions on Wells Fargo’s balance sheet, to be lifted only when the management team can prove it has sufficiently improved risk management and controls. 1,267, This story has been shared 836 times. Wells Fargo Bank branch is seen in New York By Joshua Franklin and David French Wells Fargo (NYSE:WFC) & Co is in exclusive talks to sell its asset management business, which manages more than $607 billion on behalf of customers, to a private equity consortium led by GTCR LLC and Reverence Capital Partners LP, according to people familiar with the matter. Just months since the ground breaking $7 billion sale of Eaton Vance, the asset management sector continues to consolidate, with two notable auctions hitting milestones. Sorry, your blog cannot share posts by email. We've received your submission. We are not exiting them because of the asset cap,” Scharf said. Advisor Technology Outlook: Questions You Should Be Asking Your Advisor Tech. The sale is likely to fetch around $3 billion for the company. Both Bank of … “By creating one overarching management structure, we will simplify processes, improve how we operate, and deliver even better and faster service for our clients,” Wells Fargo added. The bank is now on its third CEO since the scandal and has underperformed most of its peers in the last four years as it has dealt with the aftermath. This story has been shared 1,629 times. New figures released by the bank include the average level of yearly revenues (fees and commissions) per financial advisor. A Wells Fargo spokesman declined to comment. We are bringing our brokerage and wealth businesses together into one client-facing structure.”. The sale is likely to fetch … 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. As part of the reorganization, Wells Fargo Advisors President Jim Hays is set to take on more “responsibility for the combined client structure,” including “the advisors and leaders serving clients in the Private Bank and Abbot Downing along with all of the WFA channels,” the bank said. Wells Fargo’s asset management business — part of the wealth unit — could be sold for over $3 billion, according to sources who spoke with Reuters for … Wells Fargo & Company WFC is looking to divest its asset management division, per Reuters. As it moves to improve results, Wells Fargo is planning job cuts that may trim up to 20% to 25% of its workforce — representing about 50,000 to 66,000 jobs, according to a report last month in Pensions & Investments. Advance your career and take your firm's production to the next level with FREE practice-management tips. The sale of the asset management business is one of many steps taken by Scharf to turn Wells Fargo around following a years-old sales practices scandal. The best way to deliver quality service is by understanding what clients want from your interactions. 1,629, This story has been shared 1,267 times. Overall, the $1.9 trillion-asset company said that it has identified roughly 250 efficiency initiatives it expects to execute over three to four years. ARK's Cathie Wood: Big Shift From Bonds to Stocks Is Coming, Harry Dent: Market Crash Coming in 2-3 Years; Economy ‘Already Dead’, 33 Undervalued Stock Picks for 2021: Morningstar, 11 Key Pieces of Biden's $1.9T Stimulus Plan. “I just want to be clear. Wells Fargo reportedly is exploring the sale of its asset-management arm, a business that could fetch more than $3 billion, as it looks to revamp its business. 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