Chase Manhattan Corp. said on Friday that it is withdrawing from the business of providing cash management services to correspondent financial institutions.
As part of the move, about 40 banks using Chase to provide cash management services for their corporate clients can switch to Mellon Bank Corp. for comparable services.
Mellon and Chase have agreed to cooperate in transferring the business, starting Oct. 1.It was not immediately clear how many former Chase customers will go with Mellon.
"We made the decision to work with Mellon, rather than simply exit the business, in large part to help our customers make the migration to another leading supplier of these services with minimal disruption," said Barbara Koster, president of Chase Access Services Corp.
