The deal marks Wells' second acquisition in its effort to establish itself in the prime brokerage field, a lucrative business for other U.S. banks of comparable size. Prime brokerage involves clearing big trades and providing other services mostly for hedge funds. Wells announced the acquisition of
The terms of the Merlin acquisition were not disclosed. Merlin will be acquired by
Merlin's technology employs an open architecture, allowing clients to choose the custodian and trading platform that is right for their business, Wells said.
The deal extends Wells' offerings for the investment industry, which is increasingly focused on risk management and capital efficiency, said
Wells last month was the fourth-biggest U.S. bank by asset size, according to regulatory data.
The bank's
Unlike diversified megabanks
Among the top eight banks by asset size, the only other one based outside of
Wells expects to close on the Merlin acquisition during the third quarter of 2012. Under deal, Merlin's staff will join
Copyright: | (c) 2012 The Associated Press. All rights reserved. |
Source: | Associated Press |
Wordcount: | 340 |
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