Magazine article American Banker

Banks Were Big Buyers of Money Managers in 1st Half, Survey Says

Magazine article American Banker

Banks Were Big Buyers of Money Managers in 1st Half, Survey Says

Article excerpt

Banks contributed to the first-half merger and acquisition frenzy in the money management industry, a survey shows.

The number of acquisitions and joint ventures in the sector climbed to a record 52 - including eight involving banks - from 37 in first-half 1994, according to Investment Counseling Inc., an investment management consultancy.

"Commercial banks and bank trust companies continue to be important buyers of money management companies," the West Conshohocken, Pa., firm said in a report.

Last year banks were involved in 17 such transactions, against 12 in 1993 and only three in 1992.

Among the eight recent bank deals is Northern Trust Corp.'s May acquisition of RCB International, an investment administrator and trustee for institutional clients.

Then there are deals like the one between First of America Bank Corp. and Gulfstream Global Investors. The Kalamazoo, Mich., bank bought a 49% stake in the Houston-based money management firm.

Finally, there are banks acquisitions of other banks where the money management operations are significant. One example is the planned acquisition of Fleet Financial group of Shawmut National Corp.

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Chase Manhattan Bank has hired another senior executive to the investment management arm of its global private bank.

Fabio P. Savoldelli was brought in as chief investment officer of the Americas region of Chase Asset Management, the investment management arm of Chase's private bank. He will be responsible for investment strategy in the United States and Latin America. …

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