Thursday, November 1, 2012

Wells expands in investment banking as others retreat (Go figure…)




As banks across Wall Street retreat from the trading business, Wells Fargo & Co (WFC.N) is expanding. According to Reuters the growth worries some investors who want the notoriously conservative bank to stick to its knitting, but Wells Fargo believes that now is a good time to hire.

"Our eyes are wide open," said John Shrewsberry, head of the bank's investment banking and capital markets operations, known as Wells Fargo Securities.  "There are a lot of very talented people at different stages of availability," he added in an interview this week.

The fourth-largest U.S. bank says it can earn solid returns in investment banking while taking little risk for itself. It is focusing on services that its corporate lending customers need, such as stock and bond underwriting and merger advice. For investors, it is looking at areas like processing futures and swaps trades. The bank shies away from riskier undertakings like trading for its own account.

Read all about it at http://www.reuters.com/article/2012/10/31/us-wellsfargo-investmentbanking-idUSBRE89U1SG20121031

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