Wachovia Securities
| Company type | Subsidiary |
|---|---|
| Industry | Financial services |
| Founded | 2001 |
| Defunct | May 1, 2009 |
| Fate | Merged into Wells Fargo Advisors and Wells Fargo Securities |
| Headquarters | St. Louis , United States |
| Products | Retail brokerage, institutional capital markets, investment banking |
Wachovia Securities served as the brand name for Wachovia's retail brokerage as well as its institutional capital markets and investment banking divisions. Following the merger of Wachovia with Wells Fargo and Company on December 31, 2008, the retail brokerage segment was rebranded as Wells Fargo Advisors on May 1, 2009. Subsequently, the institutional capital markets and investment banking unit transitioned to Wells Fargo Securities on July 6, 2009.
Retail brokerage
The growth of Wachovia Securities was driven by the consolidation of numerous firms. Its earliest origin traces back to Leopold Cahn & Co., established in 1879.
Among its significant predecessors was J.C. Wheat & Co., founded in 1934, which expanded through a series of mergers. Notably, in 1971 it combined with First Securities to create Wheat First Securities, Inc., and later merged in 1988 with Philadelphia-based Butcher & Singer (founded in 1910), forming Wheat First Butcher Singer. In August 1997, Charlotte-based First Union acquired Wheat First Butcher Singer for just under $500 million, renaming it Wheat First Union. First Union further expanded by purchasing Chicago’s Everen Capital Corp., an investment bank and brokerage, for $1.1 billion in April 1999.
Separately, Wachovia Corporation acquired Interstate Johnson Lane brokerage in April 1999 and rebranded it as IJL Wachovia.
Following the merger of parent companies First Union and Wachovia Corporation in 2001, their brokerage operations were unified under the name Wachovia Securities.
On July 1, 2003, a merger occurred between Wachovia Securities and the Prudential Securities Division of Prudential Financial, resulting in ownership stakes of 62% by Wachovia and 38% by Prudential Financial. This combined entity managed client assets totaling $532.1 billion, positioning it as the third-largest full-service retail brokerage firm in the United States. A substantial portion of this client base came from Prudential’s earlier acquisition of Bache & Co..
In May 2007, Wachovia Securities expanded by acquiring A. G. Edwards based in St. Louis, Missouri. By October 1 of that year, this acquisition elevated Wachovia Securities to the position of the second-largest U.S. brokerage firm with retail client assets under management reaching $1.17 trillion.
In 2008, Wells Fargo completed its purchase of Wachovia for $15.1 billion—about $7 per share—representing nearly an 80% premium over the previous closing price of $3.91 per share. The retail brokerage was subsequently renamed Wells Fargo Advisors on May 1, 2009.
Institutional Capital Markets and Investment Banking
The institutional capital markets and investment banking division at Wachovia emerged from the merger between Wachovia and First Union. The acquisition by First Union of Bowles Hollowell Connor & Co. in 1998 significantly strengthened its expertise across multiple areas including merger and acquisition, high yield, leveraged finance, equity underwriting, private placement, loan syndication, risk management, and public finance.
The heritage of Wachovia Securities encompasses firms such as Bowles Hollowell Connor & Co., Halsey, Stuart & Co., Leopold Cahn & Co., Bache & Co., and Prudential Securities.
External links
- (Archive)