The final word is in. Wells Fargo is set to purchase Credit Suisse’ Private Bank, consisting of nearly 250 ‘Relationship Managers’ and hundreds more operations personnel and executives. Late this evening we received emails from multiple sources that advisors and staff in NYC were told that Wells Fargo had become the bid winner and was set to make an announcement early next week. Per an article earlier today on our site we claimed that the late dialogue from advisors and executives had begun to push in Wells Fargo’s direction – but we wouldn’t believe it until we saw it. Well, we are seeing it. Here are a few of the short proclamation emails that we received about an hour ago:
From an advisor at Credit Suisse, “Hearing Credit Suisse North American Broker Dealer will be sold to Wells Fargo. No insight into the highly profitable LATAM unit which uses the same resources, and sits on the SAME floor (in NYC and Miami). Also NYC lost two junior RMs, Marc Koch (son of billionaire family Koch Industries), and Chris Walters to JPM. Hope this helps! Keep on doing a great job reporting.”
Another advisor confirmed the above about an hour later, “Just heard from NY management – deal is done. It’s Wells Fargo. Can’t wait to ride in that wagon!!!!”
Another confirmation from an executive at Credit Suisse was to the point, “It’s Wells Fargo.”
Our best guess is that a majority of advisors that remain with Credit Suisse will end up on Wells Fargo’s UNHW platform – Abbot Downing. The two are tailor made for each other both swimming in elite client and services company. If that proves to be accurate, Abbot Downing could potentially double in size and begin to boldly compete with both Merrill’s PBIG and Morgan Stanley’s PWM outfits. Once this news spreads across the industry we will bring you reactions from advisors at Credit Suisse as they contemplate whatever retention Wells Fargo plans to offer – versus current offers from rivals that they may already have in hand.
On a separate note – if Wells Fargo is able to announce this deal and be somewhat successful in retaining elite teams at Credit Suisse it would more than make up for a somewhat lackluster recruiting year for the firm. As deals have claimed closer to 400% than 300% Wells has lost touch with teams that have ultimately gone to Merrill, UBS or Morgan Stanley. Adding 200 elite advisors would more than bridge the gap. More to come…