When Wells Fargo signed the agreement to acquire the U.S. private-banking business of Credit Suisse in October, the deal included the transfer of 250 client advisers. Since the two banks put pen to paper, many of the expectations raised were squashed.
At the outset, the deal look perfect: Credit Suisse (CS) was able to shed its U.S. brokerage, which didn't have the necessary size to thrive. And Wells Fargo was more than happy to take over 250 experienced CS advisers.
Things turned out quite differently as finews.ch has reported previously. The CS brokers joined other banks in droves, not least CS rival UBS. The Swiss No. 1 took on so many advisers that CS complained to the U.S. regulator Finra.
Sobering Experience
For Wells Fargo, the past three months were a sobering experience. The bank doesn't even won't to tell anymore how many of the former CS bankers it was able to retain, the «Wall Street Journal» (by subscription only) reported today, simply stating that the numbers weren't great.
However, at least it seems happy about the quality of the advisers, which it says were exactly the right type. The bank is putting on a brave face and says that the transaction had been favorable for Wells Fargo. The U.S. institute is now working on transferring the clients from CS to its books, work that would take about two quarters to conclude.
