Wells Fargo Plans Altered by Capital Needs

It's unsurprising that Wells Fargo (WFC Quote) has decided to embrace Wachovia's investment banking business rather than disown it, given Wells' capital position.

Wells Fargo, as reported by TheStreet.com last week, is fusing Wachovia's underwriting, M&A and other securities operations with legacy businesses in what will be called Wells Fargo Securities. Despite earlier indications that it would sell off some of those businesses, Wells is now seeking to expand its presence in the highly profitable investment banking space.

Wells CEO John Stumpf struck a fresh tone in a statement on Monday morning, calling Wachovia's investment banking and capital markets platforms "strong" and "one of the great benefits" of the merger. ...