Daytrading, Eminis, Forex trading, Swing Trading TOP STORY - 491509
Hun Lee  |  by www.tradingmarkets.com. All rights reserved. 21.11 | 5:43
Daytrading, Eminis, Forex trading, Swing Trading TOP STORY - 491509

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(RTTNews) - Monday morning, Charlotte, North Carolina-based Bank of America Corp. ( | | | ) revealed an agreement with San Francisco, California-based Charles Schwab Corp. ( | | | ) to buy its wealth management subsidiary U.

S. Trust Corp. in a cash transaction of $3.

3 billion. Bank of America, a provider of banking and non-banking financial services, said that the acquisition would significantly increase the size and capabilities of its wealth business and would position it as the largest financial services company managing private wealth in the U.S.

The transaction is expected to close on March 31, 2007. According to Bank of America, currently it is the second largest manager of private wealth in the U.S.

, based on assets under management by private banks and U.S. Trust holds the fourth position.

U.S. Trust, founded in 1853, currently has almost 2,100 employees based in 33 locations.

U.S. Trust targets high net worth households and ultra high net worth households and it has approximately $94 billion of assets under management.

Citing September 30th financial reports by private banks in the U.S., Bank of America said that the combined entity would be the first in the wealth management industry with $261 billion in assets under management.

Under the direction of Peter Scaturro, U.S. Trust would be combined with The Private Bank of Bank of America.

Scaturro is currently serving as chief executive of U.S. Trust.

In his new role, Scaturro would report to Brian Moynihan, President, Bank of America Global Wealth Investment Management. The Private Bank of Bank of America manages $167 billion in assets, targeting households with more than $3 million in investable assets. In January 2006, Bank of America acquired MBNA.

In a different deal announced in September 2006, Bank of America acquired HealthLogic Systems Corp., a healthcare technology company for disclosed terms. For the third quarter, Bank of America reported a 41% growth in its profit, helped by MBNA acquisition, product sales and cost controls.

The company's third-quarter net income was $5.42 billion, up from $3.84 billion a year earlier.

On a per share basis, the bank posted net income of $1.18, a 24% growth from $0.95 in the same quarter last year.

The bank's revenue for the quarter, on a fully taxable-equivalent basis, grew 32% to $18.96 billion from $14.35 billion in the third quarter of 2005.

Read more on by www.tradingmarkets.com. All rights reserved.
Keywords: Wealth Management, Private Bank, Private Wealth
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