CIBC to Buy Private-Wealth Business

By Jackie Stewart August 07, 2012, 11:20 a.m. EDT 1 Min Read

M&A

CIBC Takes the "Low-Risk" Road Across Border

Canadian Imperial Bank of Commerce is tiptoeing back into the U.S. after losing billions of dollars in a botched stateside push a decade ago.

By Matthew Monks

July 15

Canadian Imperial Bank of Commerce (CM) has agreed to buy MFS McLean Budden's private-wealth business.

The deal "aligns with CIBC Wealth Management's strategic priority to strengthen relationships with high-net-worth clients and enhance distribution capabilities while delivering attractive returns," Victor Dodig, a senior executive vice president at CIBC and group head of wealth management, said in a news release Tuesday.

MFS McLean's private-wealth business manages roughly $1.4 billion of assets for affluent individuals and families, endowments and foundations. MFS McLean has offices in Toronto, Montreal and Vancouver.

The financial terms of the deal, which is expected to close in the fourth quarter, were not disclosed.

CIBC has signaled that it would take a low-risk approach to expansion, especially in the U.S., by acquiring niche businesses rather than whole banks. In August 2011, CIBC completed its purchase of a 41% stake in American Century Investments, a Kansas City, Mo., asset management firm, for $848 million.

Executive Editor, American Banker Magazine

mailto

For reprint and licensing requests for this article, click here.

Consumer banking

TRENDING

Regulation and compliance

Fed's Bowman says she sees path forward for altered capital proposal

Federal Reserve Governor Michelle Bowman said she believes there is a feasible path forward for the revised capital reform proposal, emphasizing the importance of making broad changes informed by industry feedback to achieve broad consensus among Federal Reserve board members.

By Ebrima Santos Sanneh

Just now
Originations

Mortgage rates hit a five-month high

But views are split, at least in the near-term on whether rising mortgage rates are holding back the Spring home purchase season.

By Brad Finkelstein

8m ago
Digital banking

FedNow could be that rare tech innovation whose results match the hype

FedNow emerges as a key component of our industry's digital transformation, filling the void in our payment infrastructure and paving the way for a new era of banking.

By Naseer Nasim

2h ago

MORE FROM AMERICAN BANKER

Regulation and compliance

Fed's Bowman says she sees path forward for altered capital proposal

Federal Reserve Governor Michelle Bowman said she believes there is a feasible path forward for the revised capital reform proposal, emphasizing the importance of making broad changes informed by industry feedback to achieve broad consensus among Federal Reserve board members.

By Ebrima Santos Sanneh

Just now
Originations

Mortgage rates hit a five-month high

But views are split, at least in the near-term on whether rising mortgage rates are holding back the Spring home purchase season.

By Brad Finkelstein

8m ago
2024 is the year of "The Great Gloom" and American workers are unhappier than ever

From the early uncertainty and illness associated with Covid-19, to subsequent wars, supply chain issues, rising prices, inflation and layoffs, there has been a lot to deal with. And workers are in the doldrums right now.

Partner Insights from Amply
Regulation and compliance

Pathward Bank to pay more than $700,000 for compliance failure

The Office of the Attorney General in New York says the bank violated the state's Exempt Income Protection Act, illegally transferring customers' money to debt collectors.

By Catherine Leffert

April 17
Earnings

Citizens reports fast progress in building its private bank

The Providence, Rhode Island, company is having discussions with private wealth management teams elsewhere as it seeks to expand its fledgling private bank. In just three months, private banking deposits doubled to $2.4 billion.

By Allissa Kline

April 17
Earnings

'Higher-for-longer' hits U.S. Bancorp as funding costs stay elevated

After the Minneapolis-based company reported stubbornly high commercial deposit costs, it reduced its full-year forecast for net interest income by $200 million-$500 million.

By John Reosti

April 17