Bank of America Corporation has acquired U.S. Trust Corporation, positioning the bank as the largest financial service company that manages private wealth in the US.
“The acquisition of U.S. Trust, a prestigious 153-year-old firm, enhances our credibility in this market, significantly advances our capabilities to serve especially ultra high net worth clients and adds scale to our private banking business,” says Kenneth D. Lewis, Bank of America chairman and CEO. “U.S. Trust has a long-standing reputation for outstanding client service and providing clients with comprehensive financial solutions by offering a full suite of sophisticated products. We believe combining the complementary capabilities of both companies will add value to our clients.”
Based on financial reports as of September 30, 2006 the new acquisition increases Bank of Americas assets under management to $261 billion.
The deal is expected to close March 31, 2007. Bank of America will pay The Charles Schwab Corporation $3.3 billion in cash for the acquisition.
Peter K. Scaturro, current CEO of U.S. Trust, will head The Private Bank of Bank of America after the U.S. Trust merge.
“I am excited about the power of this combination, which will be directly realized by our current and prospective clients,” says Scaturro. “Bank of America will serve as a leading provider across every dimension of wealth management, including the nation’s largest trust organization, its largest specialty asset manager, its leading ultra high net worth business, and top tier positions in markets of concentrated wealth such as Metro New York City and other locations around the country. This position of strength represents a special and unique opportunity for our clients and our company.”