Wells Fargo Advisors
| Company type | Subsidiary |
|---|---|
| Industry | Brokerage, Investment, Financial advisory |
| Predecessor | Wachovia Securities |
| Headquarters | St. Louis , United States |
Key people | Sol Gindi (leader since May 2022) |
| Parent | Wells Fargo |
Wells Fargo Advisors operates as a brokerage, investment, and financial advisory company based in St Louis, Missouri, functioning as a subsidiary of Wells Fargo. The firm was previously identified as Wachovia Securities until May 2009, following Wells Fargo's takeover of Wachovia Bank.
History
The roots of Wells Fargo Advisors trace back to the retail brokerage division of Wachovia Securities, which was rebranded after Wells Fargo acquired the struggling Wachovia Bank in late 2008.
Significant predecessors of Wachovia Securities include Prudential Securities and First Union Securities, both prominent nationwide brokerages formed through a series of mergers dating to 1897 and 1934.
From Leopold Cahn & Co. to Bache & Co. to Prudential Securities
Established in 1879 in New York, Leopold Cahn & Co. developed under Jules Semon Bache’s leadership, who renamed it J.S. Bache & Co. in 1892. By 1905, the firm was engaged in trading stocks and commodities with branches extending to Montreal and Liverpool. Its prudent credit policies enabled it to endure the 1929 stock market crash.
Following Jules Bache’s passing in 1944, his nephew Harold L. Bache assumed control, shortening the company’s name to Bache & Co. and expanding its global presence to 124 offices employing nearly 6,000 people by his death in 1968. During the 1970s, the firm acquired entities such as Halsey, Stuart & Co., Inc. and Shields Model Roland Inc., though it encountered financial difficulties later that decade.
In 1981, Prudential Insurance Company of America purchased Bache Group, renaming it Prudential-Bache Securities in 1982. The Bache brand was discontinued in 1991 when it became Prudential Securities, Inc.. Despite acquiring boutique investment banks before the year 2000, Prudential Securities faced reduced earnings following the dot-com bubble burst.
From J.C. Wheat & Co. to First Union Securities
Among Wachovia Securities’ principal antecedents was a firm founded in 1934 in Richmond, Virginia named J.C. Wheat & Co. The company grew through mergers including a 1971 union with First Securities that formed Wheat First Securities, Inc., and a 1988 acquisition of Philadelphia-based Butcher & Singer, resulting in Wheat First Butcher Singer.
In 1998, Charlotte-based First Union bank purchased Wheat First Butcher Singer and renamed it Wheat First Union. The subsequent year, First Union acquired Chicago-based investment bank and brokerage Everen Capital Corporation, establishing a nationwide brokerage headquartered in Richmond under the name First Union Securities—ranking as the sixth-largest brokerage firm across the country. In 2000, First Union Securities expanded further by acquiring Albany, New York–based regional brokerage and investment banking company First Albany Cos. Inc.
First Union acquisition of Wachovia and name change
In 1999, Wachovia Corporation, headquartered in Winston-Salem, North Carolina, took over brokerage firm Interstate Johnson Lane and rebranded it IJL Wachovia.
First Union Corporation acquired Wachovia Corporation in 2001 and adopted the Wachovia name thereafter. By 2002, First Union Securities merged with IJL Wachovia and was renamed Wachovia Securities, forming the fifth-largest brokerage firm within the United States.
After its public offering in 2001, Prudential Insurance Company of America became known as Prudential Financial Inc.. In 2003, it divested its retail brokerage division Prudential Securities to Wachovia Bank while maintaining a 38% ownership interest in the joint venture called Wachovia Securities. This entity managed client assets totaling $532.1 billion, making it the third-largest full-service retail brokerage nationally by assets under management.
In 2007, Wachovia acquired St. Louis–based financial services company A. G. Edwards and merged it with Wachovia Securities. This consolidation elevated the combined entity to become the nation’s second-largest brokerage after Merrill Lynch and resulted in relocating its headquarters from Richmond to St. Louis.
Wachovia Bank's Collapse and Acquisition by Wells Fargo
Following significant setbacks during the subprime mortgage crisis, Wachovia Bank was purchased by Wells Fargo, with the transaction finalized on December 31, 2008. Subsequently, Wachovia Securities underwent rebranding to become Wells Fargo Advisors on May 1, 2009. In December 2009, Prudential divested its minority interest in the brokerage firm to Wells Fargo.
In May 2022, Sol Gindi took over as the leader of Wells Fargo Advisors, replacing Jim Hayes, who had managed the division since July 2019.