It looks like the market logic of the pervasive 'rule of three' may soon apply to the world of wirehouses. The latest massive B-D merger, if it pans out, would create a giant distribution organization that few mutual fund companies could afford to ignore. Last month Citigroup
and Morgan Stanley
unveiled a joint venture that combines their brokerages (see MFWire
), and now the New York Post
's Mark DeCambre reports
and Wells Fargo
held "preliminary talks" about launching a similar joint venture, combining UBS Global Wealth Management in the US with Wachovia Securities.
The Post estimates that the two wirehouses have a total of 24,000 reps between them, versus Citi-Smith Barney-Morgan Stanley's 20,000 reps.
Spokespeople for UBS and Wachovia both declined to comment.
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