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 Doubling Asset Management Business to $1T in 10 Years

Stocks in this article: WFC

NEW YORK (TheStreet) -- Wells Fargo (WFC) is a boring bank. Since the Great Recession hit, Wells Fargo has been able to get its return on shareholder's equity in the second quarter up to 14.1%, up from a near-term low hit in 2010. It has also posted 16 straight quarters where profit was up, year-over-year.

But, what is important to me... and, I think, for all investors in financial institutions... is what Wells Fargo is trying to do to capture the future.

Read More: Warren Buffett's Top 10 Dividend Stocks

Banking is changing and advances in information technology are playing a big role in the future of the industry. in fact, in the future of the whole financial industry. The choices that are being made right now are going to have a substantial impact on what finance is going to look like.

Wells Fargo has announced plans to double the size of its asset management unit to one trillion dollars. The scheduled horizon for this move is 10 years. This move to build the asset management facility represents the way that some commercial banks are going to evolve and still remain banks, organizations that take deposits.

The word is that this area will be made up primarily of mutual funds and accounts for institutional investors. But, it can be much more than that. And, Wells Fargo is planning to grow this area through acquisitions, greater presence with larger investors as well as through the internal development that will tap the latest technology, including a movement into exchange traded funds.

This area seems to personify a structure of steady revenue flows along with lower requirements for capital than other areas in the banking world. This is consistent with the culture that Wells Fargo seems to be looking for within the whole company.

In this respect, Wells Fargo is more of a consumer's bank than most of the other large banks in the U.S. It does provide investment banking services, but these seem to play a more secondary role than these other organizations.

Read More: 10 Stocks George Soros Is Buying

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 18,030.21 +6.04 0.03%
S&P 500 2,081.88 -0.29 -0.01%
NASDAQ 4,773.4720 +8.0480 0.17%

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