Wells Fargo & Co. (NYSE: WFC) Seeks Expansion in Investment Banking

Wells Fargo & Co. (NYSE: WFC) is working on expanding its investment banking unit, according to a report from Reuters, citing that the company is “developing a taste for sales and trading as demand for U.S. consumer and business loans stagnates.”

The San Francisco-based bank is reportedly rehiring former Wachovia staff members for positions within its investment bank and is hiring new employees for the unit. Wells Fargo & Co. (NYSE: WFC) announced at the end of April that it would be expanding a business which repackages mortgages and it has recently added a similar unit for commercial mortgages.

The company also retained a derivatives unit from Wachovia which structures investment products for individual investors. Wells Fargo has reportedly sold more than $300 million worth of these products since the beginning of the year, but remains a smaller player compared to companies such as JPMorgan Chase & Co. (NYSE: JPM), Wells Fargo & Co. (NYSE: WFC) and Goldman Sachs Group Inc. (NYSE: GS).

“Investment banking is something that we think we can be very successful at over time doing it our way — customer-focused, and not leading with credit,” said Wells Fargo executive Tim Sloan at an investor day back in May.

Wells Fargo & Company is a diversified financial services company. The Company provides retail, commercial and corporate banking services through banking stores located in 39 states and the District of Columbia. It provides other financial services, through subsidiaries engaged in various businesses, principally wholesale banking, mortgage banking, consumer finance, equipment leasing, agricultural finance, commercial finance, securities brokerage and investment banking, insurance agency and brokerage services, computer and data processing services, trust services, investment advisory services, mortgage-backed securities servicing and venture capital investment. The Company operates in three segments: Community Banking, Wholesale Banking, and Wealth, Brokerage and Retirement. As of December 31, 2009, the Company provided banking, insurance, investments, mortgage and consumer finance from more than 10,000 stores under various types of ownership and leasehold agreements.

Shares of Wells Fargo & Co. (NYSE: WFC) traded up 0.97% hitting $23.82 during mid-day trading.