Wachovia and AG

about 10 years ago i overheard two investment advisors talking about the state of the industry. one said, with a look of distaste, we'll all work for a bank eventually.
 
As a former Wachovian, I knew there would be a second push toward adding another brokerage firm. The Prudential Securities deal seemed to cement their desire to stand tall in the industry. Taking the model of acquiring a brokerage and then stepping out the banking arm, I have to believe another mid-west bank acquisition is in the future for Wachovia.



Edited 1 time(s). Last edit at Thursday, May 31, 2007 at 09:48AM by hueion.
 
Wachovia is run by a Hokie so it should be in good shape. ;)
 
I think this deal makes sense, but another big acquisition and I bet investors start to get skittish. They already have plenty on their plate integrating the Golden West acquisition, now add AGE and I'd say managements' hands are full for the time being.

I also read an interesting piece on potential broker attrition. Along the lines of what lig was saying, one analyst thinks a lot of AGE FAs will use this opportunity to jump ship and take their clients to independent investment advisors.
 
From what I read, there'll likely be a lot of attrition amongst the AGE FAs since they have traditionally not had to push a lot of product, which is what Wachovia will aim to do with the increased distribution channel.

I agree, Management's hands are pretty full - they already said as much that they won't be doing anything material for awhile, especially nothing in the retail brokerage space. I think they'll probably worry more about integration for the time being and maybe some small deals along either coastline, but nothing in the Midwest.
 
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