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- Weights Fargo plans to sell its asset management business for 3 million after a 57% drop in third-quarter profits, Reuters reported.
- The bank’s asset management arm, which provides high net worth customers, will be part of this business.
- US Bank has held talks with potential asset management companies and private equity firms, but no deal has been confirmed yet.
- Wells Fargo’s third-quarter profit fell to nearly 2 2 billion from billion 4 billion a year ago, as it signaled it was ready for a wave of sworn loans.
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Wells Fargo is looking to sell its asset management business after posting below 57% in third-quarter profits, Reuters reported on Thursday.
U.S. Bank of America’s billion dollar managers The bank’s asset management arm could fetch more than Rs 1 billion, sources said.
The potential deal since joining BNY Mellon last year will mark CEO Charles Scarf’s bank’s first overall, as it seeks to transform the pay firm by cutting costs and saving 10 10 billion annually.
Wells Fargo has held talks with potential asset management companies and private equity firms, but no deal has been confirmed yet, Reuters reported. The spokesman declined to comment on Business Insider.
Meanwhile, the asset management business that provides high-end clients will still be part of the bank.
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Wells Fargo reported a 19% drop in net interest income in the third quarter in response to COVID-19, which had a historically low interest rate.
“The path to economic recovery is unclear as the negative impact of COVID continues and further financial stimulus is uncertain, but we are stronger than our capital and liquidity levels even better than the regulatory minimum.”
Profits fell 57% to about 2 2 billion, from $ 6.6 billion a year earlier, as the bank indicated it was ready for a wave of sworn loans. But, during the outbreak of the epidemic, the results were even better than in the second quarter, when the bank lost $ 2 billion, setting aside provisions for bad loans.
The Federal Reserve banned Wells Fargo’s balance sheet after a fake account scam in which the company created millions of accounts for customers without their permission.
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