US bank Wells Fargo has refused to take back 175 employees who were once with the bank but defected to US rival Wachovia before being acquired in a deal that was formalized this month.

There were 2,000 employees in total who left San Francisco-based Wells Fargo to join Wachovia before the acquisition of the latter bank was announced, according to Wells spokeswoman Kathleen Golden.

Ms Golden said the employees received letters before the end of last year stating they did not meet Wells Fargo's employment eligibility requirements.

“The decision was based on the individual circumstances surrounding each person's employment history with Wells Fargo. This review is part of a standard due-diligence process for all mergers,” she told WealthBriefing.

Ms Golden confirmed there were five advisors within the brokerage business who were part of the 175 Wachovia employees not welcomed back into Wells.

A report in InvestmentNews named two individuals: Kent Elliott and Matthew Schmitt, a $1.7 million team in

Roseville,
California, who have since joined Robert W Baird & Co.

Ms Golden said the affected Wachovia team members were given the opportunity to request a review of their eligibility status “and many of them have chosen to do so”.

The firms are still in the process of combining the respective businesses and no additional guidance has been given on further staff fallout resulting from the merger.

David Carroll, previously head of Wachovia’s Capital Management Group, has since been named head of Wells Fargo's wealth, brokerage and retirement-services group.