This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
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 Leads Charge for Wealth Management

Stocks in this article: WFC BAC MS BK PRU UBS

NEW YORK ( TheStreet) -- Wealth management acquisitions are poised for a pickup later this year, with the latest rumors in the sector centered on the possibility that Wells Fargo (WFC) would want to acquire UBS (UBS) U.S. wealth operations.

Wells Fargo Chief Executive John Stumpf has said in several interviews that the firm is on the hunt for acquisitions in its wealth management business. Since 2009 there has been speculation that UBS, has been in talks with Wells Fargo about selling its U.S. wealth management business to shape up after the financial crisis.

"It makes sense. Wells has integrated a lot of acquisitions and by doing this one they would be just as big as Bank of America Merrill Lynch (BAC) and Morgan Stanley Smith Barney (MS)," said Jeff Spears, a co-founder and CEO of Sanctuary Wealth Services LLC. "The two have different types of clients so there would be little overlap."

Wells list of recent acquisitions includes Wachovia Corp., A.G. Edwards & Sons Inc. and First Union Corp.. The bank is expected to finish its integration of Wachovia by the end of this year.

John Dowd, regional managing director for the Northeast Region of Wells Fargo Wealth Management told TheStreet that the firm did have the opportunity to make some acquisitions. Although Wells Fargo stated of the rumors that Wells was pursuing UBS wealth management that, "Any talk about a possible Wells Fargo deal with UBS is based on pure rumor and speculation."

Wells is not the only bank pursuing acquisitions in wealth management right now, Bank of New York Mellon (BK) is also seeing opportunity in the market to make acquisitions, Lawrence Hughes, CEO of BNY Mellon Wealth Management told TheStreet.

"We are always looking for quality firms," says Hughes. "We would be interested in firms in the Dallas, Houston, and Phoenix areas and internationally we would be interested in expanding in Brazil or the Asian markets."

Dowd said there are several wealth management firms and registered investment advisories that could be rolled up this year due to regulatory and compliance costs pose capital challenges for smaller wealth management brokerages.

"Besides the regulatory costs, you have to have the investment in the infrastructure which a lot of smaller firms don't have to compete. In addition, a lot of the smaller firms can't differentiate products their clients want," said Dowd. Hughes says that there will be more consolidation as principals of smaller firms retire, smaller firms look to broaden product lines for clients.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
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!

Markets

DOW 18,053.71 +23.50 0.13%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

Brokerage Partners

Rates from Bankrate.com

  • 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