State Street, Citi Begin Retirement Plan Effort
QUINCY, Mass. - State Street Corp. and Citigroup Inc. said Tuesday that they had begun a venture, CitiStreet, which specializes in retirement plan management and administration and which was announced in December.The venture, with 3,000 employees, merges State Street's retirement investment services unit and its Wellspring Resources with Citi's Copeland Cos.
The retirement investment services unit manages large corporate retirement plans, and State Street's Wellspring Resources specializes in employee benefits consulting. Citi's Copeland Cos. works with smaller plans.
CitiStreet said it is the third-largest defined-contribution plan record keeper. It administers $200 billion of assets for more than five million plan participants. State Street and Citi said they would split the new company's profits, which have been projected at about $300 million.
When the venture was announced, State Street and Citi said they were combining the businesses because each lacked the size and distribution capabilities needed to compete in the hot market for 401(k) and other retirement plan services. Fidelity Investments in Boston manages more than $290 billion of defined-contribution plan assets, and TIAA-CREF, the benefit plan for teachers, manages more than $250 billion.
James Phalen, a State Street vice chairman who is now chief executive officer of CitiStreet, said in a statement Tuesday that the venture "positions us aggressively to penetrate new and growing markets in the U.S. and overseas."
Sanwa of California Names President, CEO
LOS ANGELES - Sanwa Bank California named Ryosuke Tamakoshi president and chief executive officer. He succeeds Tom Takakura, who said he was returning to the company's Japanese parent to run retail banking.Mr. Tamakoshi, who has been at the Los Angeles banking company for 30 years, was most recently senior executive officer in charge of the global finance and investment banking division. He will take on the president and CEO duties gradually through the end of April.
Mr. Takakura, spent nine years at Sanwa Bank California, including four in the top job. In a statement, the banking company praised his tenure. "The bank's financial results improved dramatically, culminating with 1999 being the fifth consecutive year of record earnings," the statement said.
Sanwa has $9 billion of assets and is the third-largest bank headquartered in California, with 107 branches. It is a subsidiary of Tokyo-based Sanwa Bank Ltd.
Union Planters Hires Chief for Banking Unit
MEMPHIS - Union Planters Corp. on Tuesday said it has hired John V. White Jr. to be chairman and chief executive officer of its three-county Memphis banking unit.He succeeds Kenneth W. Plunk, who has been promoted to manage the $33 billion-asset company's three-state Midwest group.
Mr. White was an executive vice president at Cleveland-based National City Corp., where he ran the Indiana retail banking operations. He will take up his duties at Union Planters on May 1.
Union Planters, which was the only top 25 U.S. banking company to miss analysts' 1999 profit expectations by more than a penny a share, has announced a series of executive changes this year.
In February the company hired Alan W. Kennebeck as senior executive vice president for retail services, and Bobby L. Doxey as senior executive vice president and chief financial officer.