I think Wells Fargo (WFC) is making the right move by attempting to double their asset management business within the next seven years. Asset management is not a capital intensive business and it is very scalable so I’d expect the company to be able to increase profitability as it grows. Wells Fargo also has the right business model to intertwine asset management due to their strong cross-selling culture. In addition it is an excellent time to pick up assets under management on the cheap with other banks retrenching as they try and raise their capital levels. This is what make Wells Fargo unique in that they are very price disciplined in their acquisitions and they have shown the ability to meet or exceed their goals.
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