Anyone have any details on CTS (Corporate Trust Services)? Hearing rumors Wells plans and in talks to sell.
12 replies (most recent on top)
Is all over the news... https://www.businesswire.com/news/home/20210323006085/en/Wells-Fargo-Enters-Agreement-with-Computershare-to-Sell-Wells-Fargo-Corporate-Trust-Services
@biz+1a09p035 Speaking of trolls, please substantiate your post.
Wells no longer has the one basic element which a custody bank requires.... Trust.
Watch the news...
That’s just the business side.
@miw+1a09p035 Per Teamwork’s, 1932 total employees.
How many work in CTS total?
I know i know...don't feed the trolls...But @cpe1a09p035 is clearly speaking to areas of the business he/she has no knowledge of. Wells CTS has plenty of knowledge in the spaces the serve. In fact they are at the top or near the top in many of those business and have raised pricing to reduce business only to keep it. That said there remains a lot of problems and a lot of historic compensation models that, when coupled with the over all WFC cost issues, make the business less profitable, and some business lines profit losers. It's almost certain that CTS will be sold. The question is whether it will be sold in one large chunk or the pieces sold off.
I'm sure they are. Selling business lines is a tricky thing, you need to let potential buyers know it's that a sale is possible, but you don't want to be in a big hurry or to shout it from the mountain tops too often...otherwise potential buyers will wait it out hoping for a better price from a more desperate seller. If it's moving slowly, that's a good sign that they are going to get the most $ they can, rather than just dumping things fire-sale style.
Yes, there are plans to divest CTS. Due-diligence has already started w/ potential purchasers.
We will continue to exit many of these businesses in which we have no expertise and do not have the scale to compete.
Remember... we are constantly thinking of how to get our cap lifted. Our regulators, on the other hand, are constantly thinking how they can make Wells a smaller and smaller problem child which poses less systemic risk to the U.S. banking system.
It has been a thing of beauty to watch the process unfold in a very orderly fashion.
Hats off to Charlie...
From last October: https://www.bloomberg.com/news/articles/2020-10-26/wells-fargo-is-said-to-mull-1-billion-plus-corporate-trust-sale now that they’re done with wfam and student loans, only makes sense to put forth energy in this space now.
I’m pretty sure this was reported last Fall as one of the businesses Charlie was “mulling over selling”.