"There is a lot of soul-searching going on by a lot of players as to what to do with their non-U.S. private banking operations," said a fourth person, an investment banker who has knowledge of the financial sector.
The second-largest bank has lagged peers in recovering from the financial crisis, largely because of huge losses and lawsuits tied to its 2008 acquisition of subprime mortgage lender Countrywide Financial.
But outside the U.S. it has never been able to build up the business to match the scale of its home market, meaning it is far less profitable.
Across the world, it manages close to
HANDFUL OF BIDDERS
The bank had asked potential suitors to put in first-round bids this week, according to one of the three sources, who spoke on condition of anonymity.
"The people I spoke to are not expecting this to be a particularly rapid process, just given the broad scope of the operations' geography and the relative skinny information that was made available," the source said.
"Three percent of assets under management (is high) in
There was only a handful of possible bidders who could spend money on the business, this person said, naming UBS,
Wealth management businesses do not generally contain equity capital, and there was no transfer of a legal entity, so the purchase price consisted entirely of goodwill. This reduces the buyer's regulatory capital, the source said.
"There are not that many buyers who could take a two-to-three billion dollar hit against their core tier I," capital ratio, the person said.
In more than two years under chief executive
|Copyright:||(c) 2012 Financial Planning. All rights Reserved.|
|Source:||Source Media, Inc.|