Wells Fargo mulls selling asset management business
According to media reports, the division could fetch $3bn if the sale goes ahead.
Wells Fargo is considering to sell its $578bn asset management business.
The US bank could fetch $3bn for the unit, according to the reports by Reuters and Bloomberg. The firm has discussed a potential deal with asset management companies and private equity firms, although it is not certain that divestment will go ahead.
When approached by Citywire Selector, a spokesperson for the firm had not responded at the time of publication.
Wells Fargo changed its leadership last year, when Charles Scharf took on the role of CEO. He is targeting $10bn in savings annually over the long term.
Wells Fargo saw a 57% drop in its third-quarter profit. According to Reuters, Scharf told analysts on its earnings call this month that he expected to create some room on the bank’s balance sheet by exiting non-core businesses.
The firm appointed Nico Marais as permanent chief executive officer of the asset management division in June 2019. As part of the Citywire CEO Tapes series, he explained why mental health is an important issue in fund management.
He also talked about why passive investments should be seen as an additional useful tool rather than a hindrance in the active asset management.