Is Wells Fargo Heading South?
Wells Fargo (NYSE:WFC) has moved its first 900 employees to Charlotte, North Carolina, where the United States’ fourth-largest bank plans to grow its securities operation into a successful investment banking business. Even though the city is located 600 miles away from New York City, the institution believes that Charlotte will provide the right atmosphere for the venture to thrive, Bloomberg reported on Tuesday.
“On a day-by-day basis in terms of information flow, it’s all electronic, and we’re as wired as anyone else,” John Shrewsberry, president of the company’s securities unit, said in an interview with the publication. “People don’t run out of their buildings in downtown or midtown Manhattan and meet in the street to talk about markets.”
Historically, Wells Fargo has focused growing its branch network to provide necessary services for its customers, but the bank is now expanding its strategy to include investment banking. The bank’s timing was not coincidental; nine global securities firms, including JPMorgan Chase (NYSE:JPM) and Citigroup (NYSE:C), cut more than 32,000 jobs in 2012, and UBS (NYSE:UBS) has exited the business entirely. Like Bank of America (NYSE:BAC), Wells Fargo is attempting to capitalize on the less competitive market…