Wells Fargo Goes Shopping with JP Morgan

May 7, 2002 (PLANSPONSOR.com) - Wells Fargo and Co., the fifth largest US bank holding company, has agreed to buy some institutional trust and custody businesses from larger rival J.P. Morgan Chase for an undisclosed sum, Reuters reported.

Under the deal, Wells Fargo will assume custody of retirement assets and other funds generated by institutions in Dallas, Houston, and Rochester, New York. The Texas portion of the deal will transfer some $5 billion to $6 billion in assets to Wells Fargo, an executive said.

“We’re very interested in growing the Texas market particularly, and we’re very committed to the middle market custody business, so this was just a nice addition to our portfolio,” Laurie Nordquist, executive vice president for Wells Fargo’s institutional trust group, told Reuters.

Wells Fargo said it would charge the same money management fees as J.P. Morgan does.
Nordquist said it was too early to discuss job cuts, but she indicated that Wells Fargo might not hire all of the affected staff.