San Francisco lender aims to grow its Wall Street businesses
- Wells Fargo hires former JPMorgan executive Fernando Rivas
- Focus on expanding its relatively small investment bank
- Rivas will run Wells Fargo’s corporate and investment bank
- Wells Fargo has been trying to expand its dealmaking and trading operation
- Hired more than 50 senior bankers and traders since 2020
- Revenue within the corporate and investment bank rose 2% in Q1
- Investment-banking fees nearly doubled to $627 million
- Still behind peers in terms of market share
- Wells Fargo scaling back on the consumer side
- Regulatory burden lifted after fake-account scandal
Wells Fargo has made a strategic move by hiring former JPMorgan executive Fernando Rivas to build out its relatively small investment bank. Rivas, along with Jon Weiss, will lead Wells Fargo’s corporate and investment bank. The bank has been focused on expanding its dealmaking and trading operation under CEO Charlie Scharf, and has hired over 50 senior bankers and traders since 2020. While revenue within the corporate and investment bank has seen a 2% increase in the first quarter, investment-banking fees have nearly doubled. However, Wells Fargo still has a long way to go to catch up with its competitors in terms of market share. On the consumer side, the bank is scaling back its mortgage business. Additionally, the lifting of a major regulatory burden by the Office of the Comptroller of the Currency has provided some relief for the bank after its fake-account scandal in 2016.
Factuality Level: 7
Factuality Justification: The article provides information about Wells Fargo’s efforts to expand its dealmaking and trading operations, including hiring key executives from JPMorgan Chase. It includes details about the bank’s recent hires, revenue growth in the corporate and investment bank, and its progress in the industry. The article does not contain irrelevant information, misleading details, sensationalism, or biased opinions. It presents facts about Wells Fargo’s strategic moves and challenges in a straightforward manner.
Noise Level: 3
Noise Justification: The article provides relevant information about Wells Fargo’s efforts to expand its dealmaking and trading operations, including hiring key executives from JPMorgan Chase. It includes details about the bank’s revenue growth and strategic shifts. However, the article lacks depth in analyzing the long-term implications of these moves or exploring potential risks associated with the expansion strategy. It also does not provide actionable insights or solutions for readers.
Financial Relevance: Yes
Financial Markets Impacted: Wells Fargo
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Rating Justification: The article discusses Wells Fargo’s efforts to expand its dealmaking and trading operation, which is relevant to financial topics. However, there is no mention of any extreme event or its impact.
Public Companies: Wells Fargo (WFC), JPMorgan Chase (JPM)
Key People: Fernando Rivas (Former JPMorgan Chase executive, to run Wells Fargo’s corporate and investment bank), Jon Weiss (JPMorgan veteran, to run Wells Fargo’s corporate and investment bank alongside Fernando Rivas), Charlie Scharf (Chief Executive of Wells Fargo), Doug Braunstein (Veteran investment banker, appointed as vice chairman at Wells Fargo)
Reported publicly:
www.wsj.com 
