ABSTRACT
Like many other banks and savings and loans, Wells Fargo had enjoyed enormous success with the universalization of individual retirement account (IRA) for all working people in 1981. Banks and thrifts have structured the brokerage services in a variety of ways: purchasing turn-key investment services through a discount broker and/or fund manager, extending their own internal brokerage operations to accommodate IRA investors, or building or buying a brokerage subsidiary. IRA investors are becoming less and less complacent, especially those with larger accounts and who tend to be more sophisticated and more in touch with the broad financial community. The industry’s zealous marketing efforts have, fortunately or unfortunately, taught consumers to shop around for a home for their IRA. Instead of relying solely on net funds to support a traditional IRA portfolio, an expanded IRA investment program offers considerable potential for fee income in addition to spread.
