CoreStates Financial Corp., fresh on the heels of being granted limited investment banking privileges, plans to apply for additional powers early next year.
On Monday the Federal Reserve Bank of Philadelphia granted the Philadelphia-based banking company's subsidiary, CoreStates Securities Corp., the power to underwrite and deal in investment-grade municipal revenue bonds, commercial paper, residential mortgages, and other consumer receivable-backed securities.
The banking company plans to apply for additional powers allowing it to expand into underwriting corporate debt and equity.
Offering such products wouldn't mean that the company is diving into unmapped territory.
"CoreStates has a long-standing history of being involved in many facets of the investment banking business," said Thomas F. Dooney, president and chief executive officer of CoreStates Securities. "The section 20 expands our flexibility to deal in certain products. The credentials, the expertise, and the client base are not new."
Mr. Dooney will manage CoreStates Securities and report to Daniel Aboyan, chairman of CoreStates Securities and senior managing director of CoreStates Capital Markets.
Some businesses in CoreStates Capital Markets-such as public and corporate finance, retail brokerage, and institutional sales and trading- will be shifted to CoreStates Securities.
Roughly 100 CoreStates employees will be dual employees of the bank and of the securities subsidiary. Mr. Aboyan noted that, while no hiring target had been set, CoreStates expects to continue hiring as it grows.