Wachovia Securities eyes UBS brokerage unit
By Jim Gallagher
ST. LOUIS POST-DISPATCH
02/14/2009

Might Wells Fargo & Co. marry Wachovia Securities to the brokerage operation of UBS AG?

That possibility arose Tuesday with word that the big Swiss bank was shopping its American wealth management unit around to potential buyers.

Both the New York Post and The Wall Street Journal reported Tuesday that Wachovia Securities had been approached as a merger partner.

A Wachovia Securities spokeswoman declined to comment on “rumors and speculation.” Wells Fargo bought Wachovia Corp. in January in a massive bank merger. St. Louis-based Wachovia Securities came with the deal.

Wells Fargo previously said it intends to hold on to Wachovia Securities and keep its base in St. Louis. That hasn’t changed, a Wachovia Securities spokeswoman said Tuesday. Wachovia Securities employes about 4,800 people in metro St. Louis.

The Wall Street Journal said UBS had approached Wachovia Securities and Morgan Stanley last year about buying UBS’ brokerage operation. The Swiss bank also approached Bank of America and J.P. Morgan Chase, the newspaper said, citing anonymous sources.

The New York Post on Tuesday said UBS has held preliminary talks with Wachovia Securities about forging a joint venture.

Wachovia Securities, with 16,000 brokers, is twice the size of UBS’ brokerage unit.

UBS bought its way into the American brokerage business by paying $11.5 billion for PaineWebber in 2000. Now, it is struggling after massive credit-related losses. It received a $60 billion bailout from the Swiss government last fall.

UBS’ wealth management unit is also under federal investigation over suspicions that it helped more than 17,000 people evade U.S. taxes.

The credit crisis has forced even healthy banks to consider shedding side businesses in order to concentrate on the core business of banking, said Michael Flanagan, an independent brokerage industry analyst in Philadelphia. “Both UBS and Wells have reason to reevaluate,” he said.

A deal with UBS would place employees on Jefferson Avenue through their third major adjustment in less than two years. Wachovia bought A.G. Edwards, a century-old St. Louis institution, in 2007. Now, those same employees are adjusting to their new bosses at Wells Fargo headquarters in San Francisco.

A merger with UBS “certainly would shake out a fair number of the remaining A.G. Edwards people,” said Flanagan. “They’re much more accustomed to the collegial and congenial environment of A.G. Edwards.”

Wells Fargo has not chosen a name for the St. Louis unit, and the Wachovia name is still on its headquarters on Jefferson Avenue. “We are still discussing branding for the brokerage firm, and a new name should be announced in the coming weeks,” said spokeswoman Teresa Dougherty.

A UBS broker in St. Louis said they’d been told nothing about a potential sale. “The general reaction is complete surprise,” he said.

Just a matter of time

Be patient you are now Big ass on here please leave…There is only one person with less credibility on this board and that is DL…Everything and I mean Everything you have said is BULLSHIT…even latest comments about joining ms and saying they still have trips that is BS they do not have trips th…ey were all canceled…You are worthless on here…Stay away…you don’t even work here anymore …We don’t even believe that you ever did…never mind doing the deal you allege you did in one afternoon…You are worthless

Be patient=worthless

A UBS deal would result in a much better retention package, that’s for sure.



I would contact your local UBS manager and try to get an offer in hand ahead of time…should a JV be proposed, the MUCH higher offer should trump any WFC/UBS retention…

What happened to the tool rod who last week said he called jim hays and Jim called him back and said shortly after the testimony in congress last week we would hear about a conference call. He seemed convincing when I said no way did hayes call you back. I really am starting to think most guys or gals on these posts are just full of it.  

From my understanding a call was never officially scheduled but a call was promised.  Then, promised later, and finally moved up to something like the following Tuesday. 

Well Tuesday came and went, a regular manager call was canceled, and we are (including managers from what I understand) still completely in the dark. 

Same as it ever was as the Talking Heads would have said.

Some of the recruiters tell me - don’t you understand - they just don’t give a _____ … You all don’t matter to them at this point - they (the bank) is trying to stay alive and above water and they really don’t have time to deal with this situation.

If we go down that line for the sake of argument - they would have announced no retention and been done with it. Right?  The political good will that would have earned them is quickly fading away - Wells could have announced no retention before the testimony and looked like a star at our expense, but they didn’t. 

That leads me to believe a JV is being worked out and thus nothing can be said about any structure or retention at this point.  So I might still suggest Friday for that to happen or to be announced - again it’s a big deal so they couldn’t be expected to put it together in just four weeks.

But you still have to allow for the possibility that the recruiters have been right all along. 

I believe that IF WFC’s decision is not to pay broker retention, they would (especially in today’s market environment) simply stay silent on the topic indefinitely. Why give disgruntled brokers a date to circle on their calendars and execute their Plan B’s? It would seem to me that by simply ignoring the issue, it is a win-win for them. Sure, some will get fed up and leave (a fact they seem to care little about) but in the meantime, they still have a large number of brokers producing profitable revenue for them. Obviously broker morale is of zero interest to them, in any case.

Bud Fox. Dont be a hater. So you dont think I ever worked for AGE. Ask me anything only an AGE broker would know. I am starting to realize that the ones that attack are the smaller producers that dont have any options because if they looked for plan B others would say “Dont want you” so only option is to hope for money here and be jealous of those that are leaving

[quote=BE PATIENT]Bud Fox. Dont be a hater. So you dont think I ever worked for AGE. Ask me anything only an AGE broker would know. I am starting to realize that the ones that attack are the smaller producers that dont have any options because if they looked for plan B others would say “Dont want you” so only option is to hope for money here and be jealous of those that are leaving[/quote]


I happen to like you.

Two Premier Advisors in my complex have left for UBS in thge past two weeks, one today.

What’s a “Premier Advisor”?

above 785 in production.

WS version of Chairmans council, 750m or better.

sorry…in 2008 it was 765 in production

2008 Premier Advisors Production Tiers

I dont understand why you are still waiting for that retention package....Wells Fargo has told Evergreen people there is no retention package. I dont think they are a company that is willing to pay anything. Morgan Stanley or Goldman Sachs may give you a welcome package, but not Wells Fargo. Sorry.

[quote=StraightTalk] sorry…in 2008 it was 765 in production

<SPAN =SubSuber>2008 Premier Advisors Production Tiers

imminent?  so december 2012?

after 300 pages we have not had one reliable source be correct…

sure feels that way, doesn’t it? I don’t like the way this has been handled…it doesn’t speak well of sr. management, they should be ashamed.