Wells Fargo Said to Be Selling Retirement Plan Business to Principal Financial
March 19, 2019 by Janet Levaux
Wells Fargo is reportedly in talks to sell its retirement-plan services business to Principal Financial Group for as much as $1 billion or more.
The move comes as Wells Fargo tries to trim its operations to cope with the Federal Reserve-imposed cap it has on asset growth as a result of its fake-accounts scandals.
According to a Reuters report on Sunday citing unnamed sources, the bank’s retirement plan services unit — which includes a 401(k) savings account business — could be merged with that of the insurer and financial services company. Such a deal could be reached later this month, the report says, though neither firm addressed the matter over the weekend.
On Monday, though, Wells Fargo said it “does not comment on market rumors or speculation and continues to serve retirement clients each day.”
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