Wachovia reps welcome Wells Fargo news
Late last Thursday, Citigroup Inc. of New York said it was ending talks with Wells Fargo and Co. about how to divvy up the assets of Charlotte, N.C.-based Wachovia Corp.
Brokers at Wachovia Securities LLC of St. Louis are relieved that the back-and-forth saga over the fate of their parent company has ended.
Late last Thursday, Citigroup Inc. of New York said it was ending talks with Wells Fargo and Co. about how to divvy up the assets of Charlotte, N.C.-based Wachovia Corp.
Citigroup said it would not stand in the way of a takeover of Wachovia by Wells Fargo but planned to continue a lawsuit against the San Francisco bank.
Wells Fargo quickly reaffirmed that it was proceeding with the Wachovia acquisition.
That news was a relief to Wachovia brokers.
“Most guys I talk to were all saying, ‘Just pick one [buyer], and let’s get on with it,’” said a rep at the firm in the Southeast, who asked not to be identified.
“The only thing we don’t want is uncertainty,” he added.
“I’m glad we’ve got the answer,” said a Wachovia broker on the West Coast, who asked not to be identified.
After Citigroup last month initially proposed to buy Wachovia’s banking assets, observers quickly questioned whether the stub piece of Wachovia, sans the bank, could stand on its own.
“As a stand-alone [brokerage firm], Wachovia didn’t have the balance sheet to do it,” said recruiter Bill Willis, founder of Willis Consulting Inc. in Palos Verdes Estates, Calif.
“So these [Wachovia] guys are safe for now [and] will benefit from having a large organization [as a parent],” he said.
For the full report, see the Oct. 13 issue of InvestmentNews.
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