B of A Teams Up with D.E. Shaw, A High-Tech Investment Boutique '

Moving to expand its capital markets business, BankAmerica Corp. announced Thursday a strategic alliance with D.E. Shaw & Co., a boutique investment bank known for its technological prowess.

The deal will give BankAmerica's corporate clients access to D.E. Shaw's equity-related products while providing D.E. Shaw with access to BankAmerica's share of the corporate finance market.

Neither firm will gain an ownership interest in the other.

San Francisco-based BankAmerica is the latest commercial bank to seek an alliance with an investment bank in its quest to become a true one-stop shop for finance. First Chicago NBD Corp. in January teamed with regional broker Robert W. Baird to provide equity services to its corporate customers, while Wells Fargo & Co. and KeyCorp rely on SPP Hambro to provide private placements.

By linking with D.E. Shaw, BankAmerica joins one of the leading Wall Street firms in the application of technology to financial products.

Founded in 1988 as a hedge fund, D.E. Shaw now specializes in sophisticated equity-linked products such as equity securities, convertible bonds, equity warrants, and options, as well as customized over-the-counter derivative instruments.

The firm has offices in New York, Boston, London, Tokyo, and Hyderabad, India.

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