Thursday, March 10, 2005
New BofA Private Bank Head (Where's Rappaport?)
B of A Private Bank Eyes Broader Sales to Clients
Thursday, March 10, 2005
By Jenna Gottlieb
Bank of America Corp.'s private bank is satisfied for now to operate in its parent's multistate footprint, where its new president perceives "the biggest area for growth is penetrating the existing client base."
The private bank has more than $170 billion of assets under management and 150 offices.
Jane Farley Magpiong, the newly appointed president, said there is "always a possibility" to open more offices but does not "see any immediate gaps in the bank's footprint."
"Clients have multiple needs and are looking for a way to simplify their financial affairs," she said, and the private bank can be a one-stop-shopping experience for its wealthy customers. "We want to attract new people and get them inside the doors, but the biggest area for growth is penetrating the existing client base," she said.
The bank also is reaching out to existing clients with new products and services.
In July, B of A combined the private bank's aircraft finance unit with the aircraft leasing unit in its global corporate and investment banking division. The move allowed the private bank to offer clients the option of leasing aircraft through B of A instead of a competitor.
Also last year it created a recreational real estate lending group, which finances purchases of ranches, fishing retreats, hunting preserves, or vineyards by high-net-worth clients.
The global wealth and investment management division of B of A, which includes the private bank, announced Ms. Magpiong's promotion to president on Monday. Previously she was the private bank's Northeast region president, and she is to remain the parent company's Massachusetts market president.
Ms. Magpiong succeeded Brian Moynihan as president of the private bank; he still heads the global wealth and investment management division.
The private bank targets people that have more than $3 million of investable assets with services like financial planning, brokerage, lending, estate planning, and traditional banking products. "If you're wealthy and involved financially, we have just about any product you're looking for," Ms. Magpiong said.
Wealth management is an attractive business line partly because the population of wealthy people is growing so. "The baby boomers are a sweet spot" for the bank, she said.
The global wealth and investment management division administers more than $708 billion of client assets and manages more than $450 billion. Its deposits total $111 billion and loans, $50 billion; it generates more than $6 billion of revenue a year. Ms. Magpiong declined, however, to say how much revenue the private bank contributes.
Her immediate goal is to familiarize herself with her new team and to develop long-term growth goals, Ms. Magpiong said. Before joining the company in 2003, she had spent 14 years at Wells Fargo & Co. where she most recently was managing director for private-client services in the San Francisco Bay region.
Bank of America also announced Monday that Timothy P. Maloney had been named the president and chief executive officer of Banc of America Investment Services Inc., the company's brokerage arm. He succeeded Michael Santo, who left the company to pursue other interests.
Mr. Maloney is to oversee the supplying of investment advice and brokerage services in 34 states; his unit has more than $130 billion of assets under management. He previously was the private bank's central region president.
© 2005 American Banker and SourceMedia, Inc. All rights reserved.
Thursday, March 10, 2005
By Jenna Gottlieb
Bank of America Corp.'s private bank is satisfied for now to operate in its parent's multistate footprint, where its new president perceives "the biggest area for growth is penetrating the existing client base."
The private bank has more than $170 billion of assets under management and 150 offices.
Jane Farley Magpiong, the newly appointed president, said there is "always a possibility" to open more offices but does not "see any immediate gaps in the bank's footprint."
"Clients have multiple needs and are looking for a way to simplify their financial affairs," she said, and the private bank can be a one-stop-shopping experience for its wealthy customers. "We want to attract new people and get them inside the doors, but the biggest area for growth is penetrating the existing client base," she said.
The bank also is reaching out to existing clients with new products and services.
In July, B of A combined the private bank's aircraft finance unit with the aircraft leasing unit in its global corporate and investment banking division. The move allowed the private bank to offer clients the option of leasing aircraft through B of A instead of a competitor.
Also last year it created a recreational real estate lending group, which finances purchases of ranches, fishing retreats, hunting preserves, or vineyards by high-net-worth clients.
The global wealth and investment management division of B of A, which includes the private bank, announced Ms. Magpiong's promotion to president on Monday. Previously she was the private bank's Northeast region president, and she is to remain the parent company's Massachusetts market president.
Ms. Magpiong succeeded Brian Moynihan as president of the private bank; he still heads the global wealth and investment management division.
The private bank targets people that have more than $3 million of investable assets with services like financial planning, brokerage, lending, estate planning, and traditional banking products. "If you're wealthy and involved financially, we have just about any product you're looking for," Ms. Magpiong said.
Wealth management is an attractive business line partly because the population of wealthy people is growing so. "The baby boomers are a sweet spot" for the bank, she said.
The global wealth and investment management division administers more than $708 billion of client assets and manages more than $450 billion. Its deposits total $111 billion and loans, $50 billion; it generates more than $6 billion of revenue a year. Ms. Magpiong declined, however, to say how much revenue the private bank contributes.
Her immediate goal is to familiarize herself with her new team and to develop long-term growth goals, Ms. Magpiong said. Before joining the company in 2003, she had spent 14 years at Wells Fargo & Co. where she most recently was managing director for private-client services in the San Francisco Bay region.
Bank of America also announced Monday that Timothy P. Maloney had been named the president and chief executive officer of Banc of America Investment Services Inc., the company's brokerage arm. He succeeded Michael Santo, who left the company to pursue other interests.
Mr. Maloney is to oversee the supplying of investment advice and brokerage services in 34 states; his unit has more than $130 billion of assets under management. He previously was the private bank's central region president.
© 2005 American Banker and SourceMedia, Inc. All rights reserved.
# posted by Tom @ 9:20 AM 
