The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.


All material subject to strictly enforced copyright laws. © 2021 Euromoney, a part of the Euromoney Institutional Investor PLC.

Strategy: Another one bites the dust

Wells Fargo leaves US equities stategy business

It has been a few years, but finally another bank has realized the futility of trying profitably to build or run an institutional equities strategy. ING and ABN Amro pulled out of the US market at the start of the decade, and Bank of America closed its European effort in 2003, but analysts, investors and bankers have been waiting for other players to pull out.

It finally happened at the start of August. The only problem was that it was not a wannabe big player that pulled out; it was Wells Fargo, the San Francisco-based commercial bank, fifth largest in the US by assets, whose CEO, Dick Kovacevich, has repeatedly pointed out that he has no interest in building an investment bank.

Realistic

Market players and observers were expecting – no, hoping – that it would be an institution with grander pretensions that would pull back from the market. Wachovia, perhaps, the fourth-largest US commercial bank that has this year been hiring aggressively in equities. Or one of the larger players that has spent longer trying to break into the market, such as Bank of America or even JPMorgan.

Such institutions, though, are sticking to their plans.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree