Cullen/Frost Bankers Inc., Texas' largest independent bank holding company, said Friday that it would seek approval from the Federal Reserve Board to form a section 20 subsidiary.

The San Antonio company plans to base the subsidiary, to be called Frost Securities, in Dallas. Executives intend to have it running by July 1, offering investment banking services including equity research, institutional sales and trading, and investment banking.

The company has tapped two former Dain Rauscher executives to run the new enterprise. They are Robert H. Brown Jr., who headed the Minneapolis firm's equity capital markets, and William K. Barnard, who ran its institutional equity trading.

Cullen/Frost has assets of $6.9 billion and runs Frost Bank and United States National Bank.

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