RBC in the running for Bank of America wealth units - The Globe and Mail - 0 views
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RBC in the running for Bank of America wealth units
0 commentsCanada’s largest bank, Royal Bank of Canada (RY-T
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Canada’s largest bank, Royal Bank of Canada (RY-T51.90-1.13-2.13%), is among the financial institutions looking to pick up parts of Bank of America’s wealth management business
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Aside from Europe, executives have recently said that RBC has also been looking to buy operations in Asia. The assets that Bank of America is looking to sell include businesses in both those regions, as well as the Middle East and Latin America.
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ING Group sold its private banking assets in Europe and Asia in 2010 to Julius Baer and Singapore’s Oversea-Chinese Banking Corp, respectively, for a total of about $1.9-billion.
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The units manage about $90-billion of an estimated $2-trillion that the wealth division oversees at the second-largest U.S. bank by total assets.
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Consolidation in the wealth management industry has been a major theme in the banking sector since the 2008 financial crisis
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Bank of America has lagged peers in recovering from the financial crisis, largely because of huge losses and lawsuits tied to its 2008 acquisition of subprime mortgage lender Countrywide Financial.
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Canada’s largest bank, which will release second-quarter results on May 24, has been growing its wealth management business and made acquisitions that included British fund manager BlueBay Asset Management for $1.5-billion about two years ago.
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RBC, which has said it wants to expand its wealth operations organically and with small- and medium-sized acquisitions
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My view is that they are going to sell it as a whole and therefore the number of banks that actually can do it will be more limited
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RBC, Canada's largest bank, has for years been looking to expand its global wealth management outreach and is now eager to pick up part of Bank of America's wealth management operation which is going on sale. The prospects of such an en devour are great given the predicted growth in number of millionaires in Asia. RBC has for years been interested in such an expansion and is now very interested in acquiring the wealth unit of Bank of America