Wells Fargo is set to open a new bank for those with $50 million to invest. You know, what the Occupy movement calls "the 1%." The bank will be called Abbot Downing, named after a 19th century custom carriage builder who catered to the wealthy.
The timing of the launch could not be worse from a public relations standpoint.
Just as Wall Street is under attack for its lack of attention to the 99% of Americans who DON'T have $50 million, the country's fourth largest bank has just announced plans to open a specialized firm with $27.5 billion in client assets and about 300 people on staff-- including psychologists and staff dedicated to building family genealogies to cater to the super rich. The first branch is set to launch in April 2012 in Chicago. If successful, WFB will open Abbot Downing branches in San Francisco, Los Angeles, Scottsdale, Denver, Houston, Minneapolis, Philadelphia, Charlotte, Winston-Salem, Raleigh, Naples, Jacksonville and Palm Beach.
Financial institutions are looking for new, profitable segments in which to invest, on the heels of the financial crisis caused by the lending institutions, and the increase in government oversight banning fees deemed to be anti-consumer.
Consumers are still looking for a bank who will put customers first.