Wells / UBS
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Ellie Behling – 02/10/2009 UBS has divided its wealth management units “to adjust to new market conditions and the changing environment,” the company said.
In a release today, UBS said it created two new business divisions, effective immediately: Wealth Management Americas, led by Marten Hoekstra, and Wealth Management & Swiss Bank, comprising all non-American wealth management businesses as well as the Swiss private and corporate client business. The latter will be led by Franco Morra and Juerg Zeltner.
Wealth Management
Under the leadership of Hoekstra, the Americas unit “will continue to focus on gaining scale and market share in the domestic U.S. wealth management market as well as further developing the Canadian and Latin American markets,” UBS said.
Last week, news outlets reported Wachovia Securities LLC and UBS Financial Services Inc. were in preliminary talks about a joint venture of their retail-brokerage units.
Where does UBS have the capital to buy Wachovia?
More likely UBS split up UBS Americas to sell at later point.i believe a spinoff of wachovia securities/ag edwards is highly likely. wells is focusing on integrating the banks and bank brokerage but keeping the age/wachovia securities division as a seperate entity. it smells of a spinoff down the road. ubs’ wealth management and wachovia securities would make sense to compete against morgan/smith barney, but who knows how that deal would work.
Exactly.i believe a spinoff of wachovia securities/ag edwards is highly likely. wells is focusing on integrating the banks and bank brokerage but keeping the age/wachovia securities division as a seperate entity. it smells of a spinoff down the road. ubs’ wealth management and wachovia securities would make sense to compete against morgan/smith barney, but who knows how that deal would work.
i believe a spinoff of wachovia securities/ag edwards is highly likely. wells is focusing on integrating the banks and bank brokerage but keeping the age/wachovia securities division as a seperate entity. it smells of a spinoff down the road. ubs' wealth management and wachovia securities would make sense to compete against morgan/smith barney, but who knows how that deal would work. Exactly. Right on! You don't have to be a rocket scientist to figure out why no announcement of name or retention bonus. The AGE reps will come full-circle back to an independent company.
I am fairly new to the industry so still trying to learn the competitive forces at work...I've heard people reference that a joint venture is likely between UBS and WS to compete against the combined firms of morgan/smith barney as well as Merrill/BAC. What I don't understand is this, what is it that makes WS less competitive now as opposed to before these other mergers took place. Why is it necessary to merge with another firm in order to be able to compete effectively?
Any specific insights would be wonderful..[quote=howie]
I am fairly new to the industry so still trying to learn the competitive forces at work...I've heard people reference that a joint venture is likely between UBS and WS to compete against the combined firms of morgan/smith barney as well as Merrill/BAC. What I don't understand is this, what is it that makes WS less competitive now as opposed to before these other mergers took place. Why is it necessary to merge with another firm in order to be able to compete effectively?
Any specific insights would be wonderful..[/quote] Great question. The answer is these mergers do NOTHING for YOU as an advisor. Nothing. It might help DL cash in on another deal, but DL won't be calling your clients for you. The WS/AGE merger has hurt me. Hasn't helped me one bit. I take that back...I referred one mortgage refi to Wachovia mortgage