This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Wells Fargo Warms to Investment Banking

Stocks in this article: WFC BAC JPM

Wells Fargo's (WFC) iconic stagecoach could soon be pulling up alongside the town cars favored by its Wall Street competitors.

Wells, whose quaint horse-drawn covered wagon logo is an apt metaphor for its traditional, risk-averse nature, has decided to build out its investment banking franchise. The move represents an about-face for Wells, which initially planned to sell off or wind down some key Wachovia operations that CEO John Stumpf deemed "not compatible" with its "vision and values."

The San Francisco-based company's roll of the dice on Wall Street is designed to take advantage of the disappearance or downsizing of big investment banks. The initiative, however, will be on Wells Fargo's own terms. The company has spent nine months deciding which Wachovia assets to keep, then soldering together its legacy investment banking division with the newly acquired, and arguably stronger, operations. The bank plans to unveil the new enterprise next week.

" Wells appears to be modifying the rules somewhat to run the business more in sync with its philosophy," JPMorgan analyst Vivek Juneja noted in a report earlier this month, referring to Wells' decision to expand the investment banking arm.

Wells earlier this month said it would unveil the new franchise the week of July 6, but couldn't discuss details further until that time.

Wells had first offered to purchase Wachovia's banking operations alone, but ultimately bought Wachovia's brokerage and asset-management businesses in the deal. Wells trumped an agreed-to deal between Citigroup (C) and Wachovia, with a $15 billion offer that -- unlike Citi's deal -- required no government assistance. At the time it seemed clear that, as in any combination of two major national banks with different cultures and revenue streams, there would be some overlap, perhaps some layoffs, and some non-essential lines of business tossed to the wayside.

1 of 5

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs