Signet's Brokerage Chief Quits; Bank Is Said to BeDe-emphasizing

James Eads, Signet Banking Corp.'s brokerage chief, resigned Tuesday after a decade at the bank.

"I'm grateful to Signet for the opportunities they've given me over the last 10 years," Mr. Eads said in a telephone interview.

He will remain at Signet through the summer.

Mr. Eads said he plans to explore other opportunities in the investment business and would like to land a job with an entrepreneurial bent, but he declined to comment further.

A spokeswoman for the Richmond, Va.-based bank said a successor for Mr. Eads has not been named. Signet plans to appoint a new brokerage head June 3, when it announces a larger restructuring of the bank, she added.

Mr. Eads has been president of the bank's broker-dealer, Signet Financial Services, for five years. Earlier he was chief operating officer of Signet's mutual fund subsidiary, Virtus Capital Management; president of Signet Insurance Services; and head of marketing for the bank's institutional trust operation.

On Mr. Eads' watch, Signet began a push to sell its proprietary funds and asset allocation products through financial planners. Most large banks sell their funds through planners, but it is a relatively new sales channel for smaller banks, like $12 billion-asset Signet.

Signet was also one of the first banks to roll out a proprietary variable annuity product that does not charge an up-front sales fee, known in the industry as a load, or penalties for early withdrawals. Only 10 or so banks have their own variable annuities, which have proven to be a difficult one to sell through bank programs.

One source said Mr. Eads decided to leave Signet because it is de- emphasizing the investment business. The bank spokeswoman would neither confirm nor deny that such a change in focus was planned.

The bank is also seeking to rely more heavily on direct marketing its funds and other investment products-a strategy that did not appeal to its brokerage chief.

Signet sells many traditional bank products through direct mail, which it has long used to sell credit cards. Direct marketing turned the bank's credit card operation, Capital One, into a national powerhouse. The unit was spun off in 1995.

The June 3 restructuring is expected to include layoffs. Signet adjusted its 1995 earnings after uncovering a fraudulent $323.5 million loan it made to two former Phillip Morris executives.

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