SANTA BARBARA, Calif. — If community banks want to make it in the brokerage business, they had better act more like full-service brokerage houses, according to a top executive at Mellon Financial Corp.

That means selling a wide range of funds — not just their own — and keeping clients in the loop on initial public offerings and private equity deals, said David R. Holst, national director of Mellon Private Asset Management. Otherwise, he said, clients will never believe that banks are serious about making them money.

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