DLJ Web Unit Has Deal to Expand in Asia
DLJdirect on Tuesday announced a joint venture with a Hong Kong-based conglomerate that would extend the on-line brokerage company's reach throughout Asia.DLJdirect said it plans to form a fifty-fifty partnership with Hutchinson Whampoa Ltd. this year that would give the Jersey City-based brokerage a presence in Hong Kong, mainland China, Thailand, Singapore, Malaysia, the Philippines, Taiwan, and Indonesia. The deal reportedly requires a $10 million investment from each partner and the formation of a separate company.
The unit of New York investment bank Donaldson, Lufkin & Jenrette Inc. would supply expertise in financial services and technology, and Hutchinson Whampoa would contribute its brand identity, global data center, and access to customers.
DLJdirect operates in the United States, the United Kingdom, and Japan.
State St. to Manage Thai Recovery Fund
State Street Corp. of Boston will manage a fund for the Asian Development Bank that is intended to help Thai companies hurt by the 1998 financial downturn in East Asia.The SME Restructuring Fund will be seeded with $100 million to help companies with expansion plans that include raising capital.
State Street will take an undisclosed stake in the fund, and Asian Development Bank will commit $25 million. The rest will be raised from pension funds and other institutional investors.
Separately, State Street was selected by Aberdeen Asset Management PLC to provide back-office support for $11.2 billion of assets.
- Karen Talley
U.S. Bancorp Unit Hires Fixed-Income Exec
First American Asset Management, the mutual fund arm of U.S. Bancorp, has hired a mortgage securities manager to expand its taxable fixed-income asset team.Christopher Neuharth, 40, joined the Minneapolis banking company from Brinson Partners in Chicago, where he was a director and senior portfolio manager.
Mr. Neuharth will be responsible for managing taxable fixed-income assets in First American fund portfolios and separately managed accounts.
Amro's LaSalle Unit Starts Web Brokerage
LaSalle Bank has joined the flood of banking companies offering on-line brokerage services.SpeedTrade, introduced in mid-January by Chicago-based LaSalle, enables clients to make trades, access their accounts, and obtain quotes and research reports on-line. Most trades cost $29.95, and the minimum opening balance is $2,500.
"This is the training wheel site of on-line brokerage," said Kristen Julbert, LaSalle's Internet marketing officer. "We want [customers] to be able to test the waters and get confident."
LaSalle may consider offering deep-discount trading, depending on customer demand, Ms. Julbert said.
It is a subsidiary of Amsterdam-based ABN Amro Holding.
- Amy L. Anderson
Bank of N.Y. Wins Two Custodial Contracts
Bank of New York announced two new custody contracts Tuesday.Washington State Treasurer Michael J. Murphy has appointed the bank to provide securities services to local governments and universities statewide. This is the first such statewide custody contract in the nation, according to the bank.
Bank of New York has also been named custodian for the mortgage-backed securities portfolio of New York Life Insurance Co.
Bank of New York has over $6.3 trillion of assets under custody worldwide
