Wells Fargo Explores Sale of Real Estate Unit Eastdil

(Bloomberg) -- Wells Fargo & Co. is considering a sale of commercial real estate broker Eastdil Secured, according to a person briefed on the matter.

The San Francisco-based bank hasn’t yet struck a deal, said the person, who wasn’t authorized to speak about the negotiations.

Wells Fargo is pushing to cut costs and boost revenue amid a punitive asset cap imposed by the Federal Reserve. Jessica Ong, a Wells Fargo spokeswoman, declined to comment on the potential sale. The Wall Street Journal, citing people it didn’t identify, reported earlier Thursday that Wells Fargo has been talking to private equity firms about the unit.

Wells Fargo said it has been exercising discipline in commercial real estate amid rising competition for loans. In May, Chief Executive Officer Tim Sloan said rivals are entering transactions that seem “frothy.” Commercial real estate lending declined in the second quarter, the company reported earlier this month.

To contact the reporter on this story: Hannah Levitt in New York at hlevitt@bloomberg.net

To contact the editors responsible for this story: Michael J. Moore at mmoore55@bloomberg.net, Dan Reichl, Peter Eichenbaum

©2018 Bloomberg L.P.