Wells Fargo has seen an exodus of financial advisers over the past few years amid multiple scandals that have tarnished the bank’s reputation. Now the company is laying off some advisers as it looks to cuts costs in a low-rate environment that amounts to a headwind for banks.
During the third quarter, the number of advisers at the bank’s brokerage unit, Wells Fargo Advisors, fell by 390, or 2.9%, to 12,908.
“While this change represents retirements and some natural adviser attrition, it also includes the displacement of a sizable group of salary/bonus advisers as a result of the company’s work to become as efficient as we can,” spokesperson Shea Leordeanu said in an email statement. “Wells Fargo has been transparent that we expect to reduce the size of our workforce through a combination of attrition, the elimination of open roles, and job displacements.”
Below, some of the best analysis and insight from WSJ writers and columnists, the Dow Jones Newswires team and occasionally beyond, on investing, the wealth-management business and more.
The Verdict on Trump’s Economic Stewardship, Before Covid and After: Through last year, growth and a strong job market lifted many Americans, including less-skilled workers. The pandemic reversed that, and the path back to prosperity is uncertain.
Firms Like Dow Bet Billions on Plastics. Now There’s a Glut: Petrochemical makers are pausing multibillion-dollar U.S. expansions as the coronavirus pandemic subdues what had been rapid growth in demand for plastics.
PLANNING & INVESTING
Cash Isn’t Trash Compared to Stocks and Bonds: The risks of a sharp selloff in both stocks and bonds is high at the same time, making cash an attractive haven.
From Dow Jones Newswires
The transaction price will be uniquely important in any deal by Houston oil giant ConocoPhillips to buy shale driller Concho Resources, say analysts at Goldman Sachs, who note they were told by COP management representatives at a recent meeting “that price would be the main consideration around whether the company would participate in [industry] consolidation.” The Goldman analysts say that ConocoPhillips executives indicated “the recently announced Chevron-Noble and Devon-WPX deals both reflected relatively low premiums, potentially indicating a more attractive bid/ask spread environment for prospective acquirers.” The possible tie-up was reported first by Bloomberg, citing unnamed sources that said any deal could be announced in the next few weeks. (firstname.lastname@example.org)
Traders are pointing to a flood of tech options buying as one of the culprits in the stock market’s swings this week–both up and down. “You cannot overstate the Gamma impact on the overall market of those single-name mega-cap tech options expiring tomorrow,” writes Nomura’s Charlie McElligott, in a note to clients, referring to an options term that measures how much the price of an option accelerates when the price of the security it is based on changes. Traders who buy tech options purchase them from banks and other options dealers. These dealers must hedge their positions as the market moves, potentially buying more stocks as the market rises and selling more as it swoons. (email@example.com; @gunjanjs)
BUSINESS & PRACTICE
Nikola’s Stock Fizzles After Hype-Fueled Summer. Here’s Why: Nikola was the buzz of Wall Street, trying to cut a path in electric trucking. Now, federal prosecutors are investigating claims that it misled investors.
Divestment Campaigns Move Beyond Oil: Individual companies are more likely to be in the crosshairs than entire sectors as sustainability goes mainstream.
Millions of Jobs Have Been Lost, But Hiring Is Booming at These Companies: Many Home-mortgage firms, financial-service companies and tech outfits are advertising thousands of jobs.
TRAVEL & LIFESTYLE
Welcome to Newburyport, Where Million-Dollar Homes Are Flying Off the Shelves: Compared with neighboring areas, the city just 38 miles from downtown Boston is notching a high-number of luxury deals.
The Wealth Adviser Briefing covers topics of interest to wealth managers, financial planners and other advisers. The content is curated by the Dow Jones Newswires team using articles from the Newswires, Barron’s, MarketWatch and The Wall Street Journal. The briefing is delivered to subscribers by email each workday morning at 6:30 a.m. ET. You can sign up here for email delivery.
We welcome feedback. Please email firstname.lastname@example.org or contact Dwight Oestricher at email@example.com
SOURCE: MoneyBeat – Read entire story here.