Wells Fargo re-brands investment banking business

CHARLOTTE, N.C. - Wells Fargo & Co. said Monday it has renamed its investment banking and capital markets businesses as Wells Fargo Securities.

With the rebranding of the operations, Wells Fargo's president and CEO, John Stumpf, said in a statement that the bank plans to "grow and invest" in Wells Fargo Securities.

Wells Fargo combined certain operations it already owned with businesses formerly operating under the Wachovia Securities brand under the name Wells Fargo Securities.

San Francisco-based Wells Fargo acquired Charlotte, N.C.-based Wachovia last fall.

The newly branded Wells Fargo Securities will combine all debt and equity underwriting, mergers and acquisitions, loan syndications, debt and equity sales and trading, tax-exempt products, research and economics and certain hedging products under one division.

Across the broader sector, the investment banking business has improved significantly in recent months after being nearly shut down last fall at the apex of the credit crisis. Through the first half of 2009, trading profits had improved and equity underwriting business was building.

Before acquiring Wachovia and its investment banking, Wells Fargo had only a small presence in the investment banking business. That helped it sidestep some of the problems faced by investment banks last fall as one of the largest, Lehman Brothers, collapsed.

However, Wells Fargo, like nearly all retail banks, has come under pressure from mounting loan and mortgage losses. Growing the investment banking business could provide a new source of revenue to help offset the loan losses in the retail banking operations.

Investment banking revenue could also help offset some of the losses Wells Fargo inherited when acquiring Wachovia's other operations.

Wells Fargo's rebranded and expanding operations will consist of two main business lines: an investment banking and capital markets division and a securities and investment group.

As part of the rebranding, Wells Fargo's middle market managers and acquisition advisory firm, Barrington Associates, will become part of Wells Fargo Securities. The bank's real estate capital markets services, Eastdil Secured, will continue to operate under its own name, but offer securities products through Wells Fargo Securities.

The investment banking and capital markets business is co-led by Rob Engel and Jonathan Weiss. The securities and investment group is led by John Shrewsberry.

Wells Fargo had previously brought the retail brokerage operations of Wachovia Securities under its Wells Fargo Advisors brand.

In morning trading, Wells Fargo shares added a penny to $23.09.

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