Wells Fargo to Open Bank for Super Rich Amid Fees for Debit Card Scandal
In spite of all of the negative press banks have been given of late, Wells Fargo & Co. will be opening a bank for those with over $50 million or more to invest.
Slated to open next April, Abbot Downing, will have $28 billion in assets under their management and have offices in several major cities.
Jim Steiner, who will lead Abbot Downing, said of the future popularity of the mergers-and-acquisitions deals the bank will specialize in: “I think over the next five to 10 years, there’s going to be more and more of those kinds of liquidity transactions.”
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In these tough economic times, banks are more eager than ever to gain the business of the super rich. Faced with tight regulations and push back from the general public, banks are looking to expand on its profitable areas of business.
Abbot Downing is named after a famed 19th century custom carriage builder, who catered to the super rich. Keeping true to its namesake, the bank will primarily focus on baby boomers looking to sell their family businesses.
"Abbot Downing goes beyond traditional wealth planning analysis by focusing on clients' values, goals and vision," James Steiner said. "Our advisors and Family Dynamics consultants focus not only on traditional wealth planning, such as cash flow, investments and wealth transfer, but also on human dimensions, such as family legacy, governance, leadership transition, family education and risk management."
So, as everyday bank customers continue to complain about $5 bank fees, Wells Fargo is banking on the super rich to bring in the cash.
Also, as the wealth gap in the U.S. continues to grow, expect banks to push harder to cater to rich customers, who have billions in assets to invest over the next few years.
