This has been speculated before and I probably old news. But wanted to know who thinks that merging with G.S would be a positive for Wells Fargo share holders and employees? Below is the article that talks about this scenario. Yes, it will be almost impossible to implement now since WF is under the Asset Cap. But once the Asset Cap is lifted is this M&A deal possible?
https://www.google.com/amp/s/www.pymnts.com/v/s/www.pymnts.com/news/partnerships-acquisitions/2020/goldman-looks-for-bank-merger-partner/amp/%3famp_js_v=0.1&usqp=mq331AQFKAGwASA%253D#ampf=
“Wells Fargo, PNC and U.S. Bancorp are the names on the shortlist of whom Goldman Sachs might approach for a merger deal amid declining earnings and investments, according to a Fox Business report.
Goldman, despite its reputation as the bank for the ultra-wealthy and the world’s most profitable companies, has been in a rut as of late, with its market value of $59 billion a fraction of JPMorgan Chase’s $256 billion.
So, according to sources in the investment banking world, Goldman might be on the market for a deal with another major bank in the next few months. It would be a change for a firm that has long valued its independence.
FOX Business’s Charles Gasparino, in a tweet, revealed the news, saying that sources told him Goldman Sachs’ “weakening biz model” would “force a merger.”
Goldman Sachs Chief Financial Officer Stephen Scherr said the bank would be open to acquisitions as a way to boost its current projects.
Partnering with Goldman Sachs could be a boon for Wells Fargo, which saw its reputation damaged after a scandal last year involving fake accounts made in order to hit a quota. The scandal ended up costing the bank billions in court-mandated costs and business clients. CEO John Stumpf was also let go due to the affair.
Wells Fargo’s new CEO, Charles Schwarf, is a former JPMorgan executive, and that bank has always held to a belief that partnerships between commercial and investment banking can lead to better customer service, Fox Business reported”