Recently rumours began circulating in Australian financial circles about a London-based bank running the ruler over a large chunk of a major bank’s business.
No doubt as the NAB readies to start the sell-down process for its US-based subsidiary Great Western bank, so the bank can get back to core business, the MLC might be on the selling block.
But as the rumours circulate Investor Daily reports Perpetual Investments group executive Michael Gordon has questioned the very premise that the majors can actually sell these assets.
Gordon said that while the banks might like to sell down their wealth management business the question is who would buy?
“Most of my working life, the answer to that question [who will buy a wealth management division] has been ‘the banks’. When we get into a world where they’re sellers – and you see this globally – most large diversified banks would like to sell their asset management businesses. But they can’t,” Gordon told Investor Daily.
There is a big gulf between wanting to sell and finding a buyer when you so dominate an industry as the banks and AMP do in wealth management.
We’re sure we haven’t heard the end of this story.