Aiming to strengthen their capital markets efforts, First Union Corp. and Bank of Boston Corp. have hired two executives from New York money- centers to run their private placement practices.

John Papadopulos, a managing director at Bankers Trust New York Corp. for the past three years, will lead private placements and other fixed- income efforts at First Union Capital Markets, the investment banking arm of the Charlotte, N.C.-based bank.

David Goddard, a four-year managing director at Chase Securities, will assume a similar new post at Bank of Boston.

The new positions reflect a continuing trend among banks outside New York, including NationsBank Corp., BankAmerica Corp., and National City Corp., to develop deeper franchises that include investment banking.

"If anything, it shows that the large superregionals are continuing to grow up," said Sally Pope Davis, a bank analyst with Goldman, Sachs & Co.

The capital markets groups at First Union and Bank of Boston have plenty of room to grow, by offering a range of products to their own clients and those of their merger partners.

"We're looking forward to working with BayBanks' corporate clients," said John Giannuzzi, a managing director at Bank of Boston. "We'd like to offer them a full range of products," which, for Bank of Boston and many regional banks, will include private placements.

The growth in capital markets businesses outside New York has created attractive job opportunities for private placement professionals.

"Bankers Trust is a terrific place," Mr. Papadopulos said, "but it's a more mature organization. The real appeal of First Union is the growth opportunities that the corporate finance business represents."

Capital markets have been enormously profitable for regional banks, said Moshe Orenbuch, a bank analyst at Sanford C. Bernstein & Co.

In 1994, when First Union announced the capital markets initiative, it projected annual earnings of $300 million and "people laughed," Mr. Orenbuch said. In the fourth quarter of 1995, earnings from capital markets were approximately $80 million. "Their goal for 1996 is $350 million, and that appears more do-able now," he said.

Not a major generator of fee income, private placements nonetheless provide an important and highly specialized product offering for middle- market customers.

Private placements give issuers the opportunity to offer longer-term debt than from a typical bank loan. Private middle-market companies also do not have to disclose as much information to sell their debt.

"Where the yield curve is right now, it is a terrific time for us to bring ideas to our clients that will allow them to lock in some long-term fixed rate debt," said Mr. Giannuzzi, who is a managing director of the Boston bank's corporate finance department.

Mr. Goddard's arrival will "allow us to broaden our product set, to get into the mezzanine and equity and subordinated debt in a way that we've never been able to offer," Mr. Giannuzzi said.

For First Union, private placements provide a "tremendous fit with our customers," said Mark Mahoney, a managing director.

Most banks that focus on the middle market find private placements a "necessity," said Mr. Papadopulos.

Mr. Papadopulos said he hopes to lead First Union into the upper echelon of the private placement business.

"First Union will be on par with most of the bigger firms from New York," said Mr. Papadopulos, who will report to Mr. Mahoney.

The two New York banks will promote from within their capital markets groups to replace the departing executives.

George Boudoris will succeed Mr. Papadopulos at Bankers Trust, leading a five-person team. John Youngblood will be the global product manager for United States private placements at the new Chase.

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