Magazine article American Banker

Wachovia and Pru Take Next Step in Broker Integration

Magazine article American Banker

Wachovia and Pru Take Next Step in Broker Integration

Article excerpt

Wachovia Corp.'s brokerage transferred 1.6 million customer accounts from the former Prudential Securities to its own systems over the Labor Day weekend -- a milestone in a drive to save $364 million a year through the year-old joint venture.

Wachovia Securities LLC of Richmond, Va., was formed in July 2003, when Wachovia Corp., of Charlotte, and Prudential Financial Inc. of Newark, N.J., merged their brokerages. Wachovia owns 62% of the venture, which is part of Wachovia's capital management division; Prudential owns 38%.

Wachovia changed signs on the former Prudential offices and began using its name in most correspondence with Prudential customers a year ago. In the conversion last weekend, those customers got Wachovia account numbers and statements.

The conversion also means that Wachovia Securities can start achieving long-awaited cost-cuts from the deal, in part by shutting down Prudential's back-office operations in New York.

Tony Mattera, a Wachovia Securities spokesman, said it plans to "gradually" lay off the approximately 1,000 Prudential employees that remain there over the next two quarters. About 1,000 of the back-office jobs have already been moved from New York to Richmond, and about 800 of them have been filled, some with former Prudential employees who moved to Virginia, he said.

"You will start to see more of an impact" from the savings "in the fourth quarter of this year and the first quarter of 2005 as we wrap up the integration," Mr. …

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