Wells Fargo will downsize Wachovia

SAN FRANCISCO, Nov. 6 (UPI) -- Wells Fargo will downsize several of North Carolina bank Wachovia Corp.'s businesses, Chief Financial Officer Howard Atkins said.

Wells Fargo is scheduled to complete its purchase of Wachovia by the end of the year, the Charlotte (N.C.) Observer reported Thursday. After that, the bank will divest itself of Wachovia's $118 billion Pick-A-Payment mortgage portfolio and downsize a "number of businesses," Atkins said.

Atkins said "higher risk" and "more transactional" parts of the investment banking division would be downsized, the Observer said.

"If there isn't any business, it doesn't make sense to have a large investment banking division," said Dick Bove, an analyst at Ladenburg Thalmann & Co.

Atkins said Wells may even exceed its previous target of shedding $5 billion in operating expenses based on the deal, but the bank has yet to say how many jobs would be eliminated.