There has been a boost up in the business of asset management for the Wells Fargo stock. There have been two consecutive banks, who have shown interest in the stocks recently. one of the banks has offered to diversify the revenue mix of the stock, while another has expressed interest in making relevant acquisitions in the space of asset management of the company.
There has been news that the company is going to sell the asset management division which would bring them at around $3 billion. The rumors have concretized to a certain extent by some statements made by the company’s CEO, Charlie Scharf. He said that his institution is preparing to let go of certain business holdings to focus on more significant aspects of the business and they are also working on saving by making some expense cuts.
Suitors for the assets of the Wells Fargo stock
1. The first of the probable acquirers are Goldman Sachs. There had been strong rumors in the market regarding the activities of this particular company. Some said that they were going to acquire the whole of the Wells Fargo stock along with all of its holdings. However, it is clear now that Goldman Sachs had shown their interest in the asset management business of the Wells Fargo stock.
Even while the bank had made a very impressive earning during the pandemic period, they had always stressed the fact that they wanted to go on diversifying their revenue mix. The main reason why they wanted to do it was to make sure they could keep up the good performance even when the trading activity, sales, and investment banking would not be going very strong into the market.
2. J.P Morgan Chase is the other rumored acquirer of Wells Fargo stock’s asset management business. The CEO of the institution has recently made some positive remarks on the possibility of acquiring. This institution is also pretty significant as a buyer because they are one of the sharpest competitors of the Wells Fargo group. Therefore, it can be said that it is very likely that the two companies get together to make a fair and significant deal.
The asset management division of J.P Morgan has already produced a generous amount of revenue, at around $1.6 billion in the 3rd quarter. Under the wealth management section of the company, there is another set of $2.6 trillion assets. So, if there is a deal between the JP Morgan and the Wells Fargo stock, it is going to be highly beneficial for both.
It is important to mention that the asset management section of Wells Fargo stock will have $607 billion assets in the Q3 under the management. There has also been a profit of $463 million in the third quarter.
