With scant growth expected in their core business, it's not surprising that bankers are looking to snap up mutual fund companies, says James M. McCormick, president of First Manhattan Consulting Group.

"Banks are in a low-growth business, but they are the gorillas of capital," Mr. McCormick said in a recent interview. "You've got the capital but no growth? You buy growth."

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.