B of A Looks to Serve Retail Companies

NationsBanc Montgomery Securities Inc., BankAmerica Corp.'s investment banking subsidiary, is expanding its coverage of the retailing industry.

C. Edward Carter, who resigned from Deutsche Bank Securities Inc. last month after nearly two years as head of U.S. investment banking, joined Montgomery this week as director of consumer and retail investment banking.

Though Montgomery's consumer investment banking group has historically focused on the restaurant, gambling, and lodging sectors, Mr. Carter said in an interview that he plans to expand into more traditional retailing segments like textiles, apparel, and footwear.

The expanded group will focus on serving retail companies that fall within the universe of Montgomery's equity research coverage, he added.

"In my opinion, we need to work hand in hand with our analysts. This could become one of our larger industry groups," he said.

Mr. Carter also said he plans to pursue bigger clients. "Historically, Montgomery has been very focused on the growth sector, on IPOs, and capital raising for early-stage companies," he said. "I would like to move up the food chain and include some larger-cap companies."

Mr. Carter said he is counting on the customer list at the giant bank to aid him in this effort, pointing to the strong lending relationships with the retail sector that both NationsBank Corp. and BankAmerica Corp. had before their merger.

San Francisco-based Montgomery has been going through a major redefinition ever since NationsBank and BankAmerica merged in September. Mr. Carter said he joined the firm because it is in buildup mode.

Dozens of former Montgomery employees have left, several key executives have been recruited from other firms, and New York has become more emphasized, with about half of Montgomery's executive committee now based in Manhattan.

A small group of Wall Street handle most of corporate America's underwritings. "If you look at our capabilities now in equities, corporate finance, and M&A advice, I think we can build something comparable," Mr. Carter said.

Before joining Deutsche Bank, Mr. Carter spent 16 years with Merrill Lynch & Co., the last two leading its consumer group.

The same man who brought him to the German bank also recruited him to Montgomery. Carter McClelland, now head of investment banking at Montgomery, was chief executive of Deutsche Bank's North American subsidiary.

Mr. Carter reports to Mr. McClelland, and both men are based in New York.

Mr. Carter said he plans to hire three to four new managing directors this year and will probably hire another 15 to 20 employees to work with them.

At least some of the new hires would be based in the firm's New York office, he said, because most his 10 to 12 top executives now are based in San Francisco.

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