By Toni Clarke and Svea Herbst-Bayliss
BOSTON (Reuters) - Bank of New York Mellon Corp (BK.N: Quote, Profile, Research, Stock Buzz) is preparing to snap up depressed financial assets, gaining from the pain of others as it moves to expand its wealth management business, build critical mass, and extend its geographic reach.
David Lamere, chief executive officer of BNY Mellon's Wealth Management unit, said at the Reuters Wealth Management Summit that the meltdown in the financial markets is presenting it with opportunities to build its wealth management business.
"We are not in a huge hurry, but I think there will be a high level of mergers activity in general and for us in particular," he said.
BNY Mellon is much further along the road of integration than its rivals, which are only now being forced into mergers. BNY Mellon was created when Mellon and Bank of New York merged last year.
That gives it some advantages over rivals such as Bank of America Corp (BAC.N: Quote, Profile, Research, Stock Buzz), which is currently in the process of buying Merrill Lynch & Co MER.N, and Wachovia Corp WB.N, which is being taken over by Wells Fargo & Co (WFC.N: Quote, Profile, Research, Stock Buzz), Lamere said.
With much of its restructuring complete, BNY Mellon is now able to take actions to promote growth.
That is likely to mean acquiring wealth management firms outright, or buying wealth management units from bigger firms, he said.
"We've been interested in this for five years, but they weren't available," Lamere said. "Some firms won't have the luxury of keeping those businesses now."
Many big financial firms are looking to get rid of wealth management units and smaller, independent firms are struggling to stay afloat during the worst financial crisis since the Great Depression.
But Lamere also said the company, which has been known for relatively conservative investments, would not be rushed to acquire the many assets that have suddenly become available.
"We have been flooded with opportunities," he said. "We just haven't felt the timing was right to act."
One reason is that he thinks prices to buy firms may still drop more. Once that happens, his company will pounce.
The most attractive candidates to Lamere will be firms with a strong local presence to complement BNY Mellon's more global reach. Already well-established on the East and West Coasts, Lamere said the company is close an acquisition in Texas, a region it has wanted to crack for a long time.
"We are significantly closer to making this a reality," he said. "I think it is reasonable to assume we will be there in months, not years."
He also said the bank is interested in further expansion in the Chicago area, and there is "a ton of room to grow in Florida." Continued...
© Thomson Reuters 2009. All rights reserved.
| Health | Nov 09 - 12, 2009 | Health |
| Autos | Nov 02 - 4, 2009 | Autos |
| Middle East Investment | Oct 26 - 28, 2009 | Country Summits |
| Washington | Oct 19 - 21, 2009 | Country Summits |
| Global Wealth Management | Oct 05 - 7, 2009 | Financial Services / Exchanges |
