Bank of New York said early Wednesday that it has agreed to acquire $9 billion in custodial accounts from Bank of America Private Bank in Los Angeles.
The price of the deal, which is expected to close in the third quarter, was not disclosed.
The $76 billion-asset Bank of New York currently administers $32 billion in custodial assets for affluent clients such as consultants, investment advisors, and family offices.
Bank of America Private Bank, a subsidiary of $680 billion-asset Bank of America Corp. of Charlotte, N.C., said it would continue its focus on money management, but was cutting back on its role where custody is the sole service its provides to clients.
``We believe clients will be better served by a service provider like the Bank of New York, which is committed to expanding custodial operations," said David Fisher, president of the asset management trust group at Bank of America.
Bank of New York's deals aimed at building its custody business include last year's purchase of Royal Bank of Scotland's RBS Trust Bank Ltd., the purchase of a portfolio in 1998 from London-based Coutts & Co., and another in 1996 from J.P. Morgan & Co.
Bank of New York has $6.8 trillion of assets under custody.