"The reason I left was the organizational changes and the absolute removal of the specialty focus."Ĭhief executive Charlie Scharf is on a mission to cut $10 billion in expenses at the bank, which is saddled with regulatory scandals and an asset cap. "The name change emotionally pissed me off, but it's not the reason I left," said one former senior executive at Abbot Downing. Seven employees complained about the firm's communication over its strategy and changes made to the business, with three describing it as "chaotic." But what ultimately drove them out, they said, was the feeling that they could not adequately service their elite clientele as Wells Fargo consolidated the wealth business. Still, the transition has left some employees frustrated and confused. "While change in the business can be difficult particularly for those involved, our efforts to streamline our operations has led to investments in better technology for our clients and advisors, more innovative products and services, expanded investment options, and an improved client experience" "Our new business model allows us to create a consistent risk and control framework, foster career mobility opportunities for our employees, and better meet the needs of our clients - from the affluent to the ultra-high-net-worth," said the spokesperson, Kathleen Leary. And all that went out the window once you started opening it up to everybody," he said.Ī spokesperson told Insider that the reorganization had allowed the bank's wealth-management business, which manages about $1.9 trillion in assets, to better serve clients. "Maybe you're going to make more money this way, but the people that are used to getting their Ferraris fixed are used to a certain service or quality of service and attention to detail. A former wealth advisor compared the reorganization to a car-repair shop pivoting from fixing Ferraris to Toyotas. But they worry that the cost-cutting has gone too far, resulting in Wells Fargo undoing years of progress in attracting wealthy clients. Some staff of Abbot Downing and the private bank said that they understood the economic rationale for curtailing their white-glove services. The name change emotionally pissed me off, but it's not the reason I left. Servicing clients - from obtaining custom loans to opening checking accounts - has become challenging and cumbersome, they said. As part of CEO Charlie Scharf's mission to cut $10 billion in costs, the bank has been reorganizing its wealth-management businesses to prioritize Wells Fargo's brokerage, which caters to the mass-affluent set, at the expense of Abbot Downing and the private bank.īut the transition has been chaotic and sometimes painful, with layoffs, staffing shortages, reduced client services, and topsy-turvy decision-making from bank leaders, said 18 of the 19 employees Insider talked to, most of whom spoke on the condition of anonymity out of fear of retribution. The meeting was just the beginning of what has proven to be a slow, yearslong dismantling of the bank's services to the rich, according to 19 current and ex-employees of Abbot Downing and Wells Fargo's private bank. "I didn't even have a résumé when they announced they were disbanding Abbot Downing," said one ex-manager. Instead, they were told by the division's president at the time, Jack Ginter, that Wells Fargo had decided to "retire the Abbot Downing brand." Employees would be folded into the private bank. One senior executive assumed the call was to announce new regional-director promotions. They worked for Abbot Downing, a prestigious unit that served the bank's richest clients. In late 2020, some 300 Wells Fargo employees were summoned to a conference call. Account icon An icon in the shape of a person's head and shoulders.
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