Quantcast
The MFWire
Manage Email Alerts | Sponsorships | About MFWire | Who We Are

Subscribe to MFWire.com's News Alerts [click]

Rating:State Street Acquires Wachovia's Custody Business Not Rated 3.0 Email Routing List Email & Route  Print Print
Thursday, September 9, 1999

State Street Acquires Wachovia's Custody Business

Reported by Hayley Green

State Street Bank and Trust Company said today it will purchase the institutional trust and custody lines of business from Wachovia Bank. The business represents about 270 clients with about $61 billion in assets.

Related Links
  • State Street
  • Wachovia Bank
  • Wachovia will remain custodial for endowments and foundations, clients with nonqualified executive plans and clients with 401(k) and other defined contribution plans whose assets are under Wachovia management.

    "They have a nice middle market business with portfolios of $500 million or bellow," said Ronald E. Logue, vice chairman of State Street Corporation. "It is within the Southeast where we don't have a large presence. We're also planning on establishing a local office there."

    "Wachovia's strategy is based around helping individuals manage their wealth," said Ray McKinney, executive vice president for institutional trust and retirement services, when asked why Wachovia was getting out of the custody business. "With institutions you don't deal with individuals."

    Another reason for leaving the business, according to McKinney, was the significant technology investment that was needed. To warrant that kind of investment the company would need a much higher volume than its current level.

    State Street will offer positions to 43 Wachovia client relationship managers and sales and marketing staff who currently service the business. However, there are an additional 140 individuals who will be displaced, a spokesperson for Wachovia said.

    State Street will open an office in Winston-Salem in North Carolina to house Wachovia's trust and custody employees. In addition, State Street is planning on expanding its existing office in Atlanta to augment its presence in the Southeast.

    "Having the local presence is what is important to retain the 40 plus customers which are highly thought of," Logue said.

    "The sale will allow Wachovia to devote full attention to core businesses in asset management and consulting-related services," said G. Joseph Prendergast, Wachovia's president and chief operating officer. "Focusing on these businesses will enable us to provide our clients the most value and accelerate our growth in wealth management."

    State Street will be offering their new clients a technology based product and services, and features that help them do their job better, Logue said, although he would not discuss the details. "I would say it would be in accounting, recordkeeping and administration as opposed to custody."

    As for future purchases, Logue said that there were not any being planned. "What I will say is that the middle market segment is very important for us, one which we don't talk about a lot but provides profitability."

     

    Stay ahead of the news ... Sign up for our email alerts now
    CLICK HERE

    3.0
     Do You Recommend This Story?



    GO TO: MFWire
    Return to Top
     News Archives
    2025: Q3Q2Q1
    2024: Q4Q3Q2Q1
    2023: Q4Q3Q2Q1
    2022: Q4Q3Q2Q1
    2021: Q4Q3Q2Q1
    2020: Q4Q3Q2Q1
    2019: Q4Q3Q2Q1
    2018: Q4Q3Q2Q1
    2017: Q4Q3Q2Q1
    2016: Q4Q3Q2Q1
    2015: Q4Q3Q2Q1
    2014: Q4Q3Q2Q1
    2013: Q4Q3Q2Q1
    2012: Q4Q3Q2Q1
    2011: Q4Q3Q2Q1
    2010: Q4Q3Q2Q1
    2009: Q4Q3Q2Q1
    2008: Q4Q3Q2Q1
    2007: Q4Q3Q2Q1
    2006: Q4Q3Q2Q1
    2005: Q4Q3Q2Q1
    2004: Q4Q3Q2Q1
    2003: Q4Q3Q2Q1
    2002: Q4Q3Q2Q1
     Subscribe via RSS:
    Raw XML
    Add to My Yahoo!
    follow us in feedly


      Sorry, no records in the database matched your search parameters. Clich back and try again.



    1. MFDF Director Discussion Series - Open Forum, July 9
    2. MFDF webinar - Mid-Year Tax Update for Registered Investment Companies, July 10
    3. MFDF Director Discussion Series - Open Forum (Philadelphia), July 15
    4. 2025 MMI Women in Advisory Solutions Forum, Jul 15-16
    5. Nicsa webinar - How Trusted GenAI is Transforming Data Access in Asset Management, July 16
    6. MFDF webinar - M&A and Consolidation in Asset Management, July 16
    7. MFDF webinar - ETF Conversions, July 17
    8. MFDF Director Discussion Series - Open Forum (New York), July 22
    9. MFDF Ask Anything webinar - AI Edition, July 24
    10. MFDF webinar - Use of Derivatives by RICs, July 29
    11. MFDF Director Discussion Series - Open Forum (Columbus, Ohio), August 20
    12. Samfund Soiree Boston 2025, August 21
    13. MFDF webinar - The Audit Committee Chair's Guide to Balancing Duties and Emerging Issues, September 3
    14. ICI ETF Conference, Sep 8-10
    15. Nicsa webinar - Reimagining Reconciliation: AI, Regulation, and Capital Markets Transformation, September 10
    16. MFDF webinar - Series Trust Funds - Compliance and Board Reporting, September 10
    17. MFDF In Focus - Board Oversight of DEI in Current Landscape, September 11
    18. MFDF webinar - MFDF 15(c) White Paper Webinar Series: Part 4 – Enforcement Action Takeaways, September 16
    19. MFDF webinar - Latest in Closed-End Funds Litigations, September 23
    20. MFDF webinar - Fixed Income Insights: Navigating Market Trends & Opportunities, September 24
    21. MFDF webinar - Risk Management Essentials for RICs and Boards, September 29
    22. MFDF webinar - Diligent - Tools for Fund Board Book, October 1
    23. 10th annual Fuse Forum, October 8
    24. MFDF webinar - Essential Strategies in Board Oversight of Operational Risk Management, October 14
    25. 2025 MMI Annual Conference, Oct 15-17
    26. MFDF webinar - Series Trust Funds - Effective Board Relationships with Advisers, October 15




    ©All rights reserved to InvestmentWires, Inc. 1997-2025
    14 Wall Street | 20th Floor | New York, NY 10005 | P: 212-331-8968 | F: 212-331-8998
    Privacy Policy :: Terms of Use