Magazine article American Banker

Fleet and Quick & Reilly: An Investment Power Play; Bank Expanding Consumer Savings Arsenal

Magazine article American Banker

Fleet and Quick & Reilly: An Investment Power Play; Bank Expanding Consumer Savings Arsenal

Article excerpt

With its $1.6 billion deal for Quick & Reilly Group, Fleet Financial Group has declared itself a contender in the race to capture the savings of an increasingly investment-savvy public.

Fleet would become the owner of a fast-growing discount brokerage - the third-largest in the United States - with 1.1 million clients, $20 billion of assets under management, and 116 offices in 30 states.

The stock transaction, which is expected to close in the first quarter of 1998, would also give the Boston-based banking company a powerful channel for distributing its growing stable of investments. Its recent deal for Columbia Management Corp., Portland, Ore. - slated to close in the fourth quarter - would expand Fleet's assets under management 40%, to $70 billion, including $17 billion in mutual funds.

"This deal positions Fleet to say they have the creativity, the products, the people, and the track record to help customers with wealth creation rather than just savings," said Charles Wendel of Financial Institutions Consulting, New York.

At a press briefing Wednesday, Fleet's chairman and chief executive officer, Terrence Murray, said Quick & Reilly "fits perfectly into Fleet's vision of where we want to go.

"Investment management and brokerage have become a very major business for us," Mr. Murray told reporters. He said Fleet would earn 40% of its revenues from fee-based services after the deal closes, up from 33% now. Investment product sales currently account for $38 of every $100 in fee income, according to Fleet's second-quarter earnings report. …

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