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U.S. Trust Tightens Belt

Monday, October 04, 2010 - 04:48

Speaking at the Reuters Global Private Banking Summit, U.S. Trust President Keith Banks says the firm has successfully met cost-cutting targets and no longer competes with Merrill Lynch for customers.

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to add value will bring our partner. And conversely this. From the US troops are what are inefficient and efficiencies what are inefficiencies exist and -- you know -- trying to address it. Well really it we have some very aggressive as a comedy course target cost reduction targets of the front which in all acquisition happens those targets of the net. And in -- understandable US trust organization industry decade decade of performance standpoint. People have much more heavily skewed toward fixed income . Cash like instruments onto waiting equities so if Michael's -- awful things like -- How are -- thanks to -- banks US trials I'm Fred Katayama this is. US trust it's within Bank of America Merrill Lynch. Giving clients a choice about what kind of wealth management they want. Keith banks president US trust joins me after speaking at the Reuters global private. And Keith welcome US trust another result of many several different organizations. Over the years. Heidi there's the coordination of this large sprawling farm across the various platforms. Well basically what we've done very importantly everything's great there's one affirmed its US trust. Doesn't matter what legacy organization you David part of one firm once structure that we basically divided up in court. -- shaky but -- you've got different sales forces don't think bump up against each other out in the field competing for the same dollars. No we do within US trust is we have four divisions. Within forty east division we have a number of markets and so we're we're basically structured by geography. So there's there's no there's no bang into one and other's floors that goes all one team what company. But if if you have one -- the -- as Heidi the term in this person's US trust this person goes for. You know law now that -- the -- parts of your business right. Again did it if it's -- if if you if you're talking US trust person Merrill Lynch. There's an interest in demarcation happens at the front -- The client really decides as it traveled that path that he wanted to importantly. Quality full line -- private bank which is what US trust is. It's so a look at a referral to other private -- would they wanna be at a brokerage platform. And basically have a relationship with a financial adviser. And you look at Coolidge and in. View versus there others there's very little overlap so the total war. Really be we're we're we're really managing the two businesses separately. Well we try to do though this were I think it's powerful proposition. Is come together partnership if your client of bars. And US trust but there's something that's primarily due to add value will bring our partner. And conversely this. From the US troops are what are inefficient and efficiencies what are inefficiencies exist and -- you know -- trying to address it. Well really it we have some very aggressive as a comedy course target cost reduction targets of the front which in all acquisition happens those targets of the net. And in -- understandable US trust organization industry and it'll -- which organization. The efficiencies realized. And again the way -- think about this. Is actually pointed that it has -- demarcation. As a company. Reported global wealth and investment management within Bank of America we will get a bigger share of the ultra high net worth while it. Because we have both US trust in. That classes they've held the profits have been squeezed Heidi a restore profitability. Was couple ways of loyalty he -- he -- growth going again. And we're working hard to grow assets under management. We also US trust that the pressure with with the advisory being so difficult. Even -- it worth ultra worth clients has some credit difficulties and we have a very big -- book with our lives so we absorb some of that but we've inflection point. So as we get natural growth going. Again -- get it'd -- on the credit side we're gonna see profit three. Leslie you described earlier sessions saying that there's a recruiting war going out there. -- honey attracts the best people yet retain the best people. And keep costs down right. First we have to make sure you're you're putting resources against real opportunities if you bring -- bid you'll get a return that investment. There -- two people want to be part waiting for. If if they can see that this is the platform this is a firm that can serve clients at the highest level. And it can be part of the success that firm they would be here. I'm so are retention has ever been very successful and we for a lot of people from other firms who view us is having its superior platform it wanna be part. Are quickly. Average allocation through five years ago what was it like -- houses different. Three to five years ago much more heavily skewed toward equities. Several want to be part equities. As a result of equities having such -- difficult decade decade of performance standpoint. People have much more heavily skewed toward fixed income . Cash like instruments onto waiting equities so if Michael's -- awful things like -- How are -- thanks to -- banks US trials I'm Fred Katayama this is.

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U.S. Trust Tightens Belt

Monday, October 04, 2010 - 04:48