Magazine article American Banker

1st Interstate to Lease Space to a Full-Service Brokerage

Magazine article American Banker

1st Interstate to Lease Space to a Full-Service Brokerage

Article excerpt

SAN FRANCISCO -- First Interstate Bancorp, Los Angeles, in addition to operating its own discount brokerage service, will lease space in several of its branches to a full-service brokerage, Wedbush, Noble, Cook In.

The arrangement, in which referrals will be made between the two securities services, is intended to provide First Interstate customers with alternative approaches to investments.

First Interstate's discount service takes orders for selling or buying stocks, bonds, or options at a discounted fee. But, unlike Wedbush, it does not offer investment counseling.

First Interstate is one of several large banking firms that have either created their own discount brokerage services or made cooperative arrangements with, or acquired, established discount brokerages. Banks are prohibited by federal law from operating full-service brokerages.

The company said the leasing of space to Wedbush is one of the first arrangements of its kind involving securities firms. Bank of America recently announced a similar arrangement in a different field, saying it would rent space in its branches to an insurance company.

Wedbush will lease space in the headquarters of First Interstate Bank of California in downtown Los Angeles and is schedule to open offices in branches at Century City and La Jolla. It already has offices in First Interstate of Arizona branches in Phoenix and Sun City. Others will soon be operational in affiliate bank branches in Bellevue, Wash. …

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