Keil's Crew Hopes to Add Stock Brokerage
NEW YORK -- In an effort to offer a broader range of products, Republic New York Corp. is seeking regulatory approval to establish a stock brokerage unit.
The unit would offer discount and full-service stock trading services and provide investment advice to retail customers.
The application comes as depositors - the linchpin of Republic's business - are looking for alternatives to certificates of deposit and other traditional bank products.
Quest for More Lucrative Options
"People are looking at CD [certificate of deposit] rates and getting sticker shock from how low they are," said Republic treasurer Thomas Robards. "They are trying to find something more lucrative."
The stock brokerage unit, Republic New York Securities Corp., will be separately capitalized and managed, but will report to Republic's executive committee.
Mr. Robards declined to reveal the planned capital of the unit or say who will head it until the company's application is approved. The company hopes to open the unit early next year and will market brokerage services to its existing customers.
|800,000 Potential Clients'
"Our view is that we've got 800,000 potential clients," said Jeffrey C. Keil, president of Republic National Bank of New York, the company's main banking unit.
He added that the retail securities unit would offer "ultrabasic investment products."
Among the first will be a family of short-term and intermediate investment funds comprised of U.S. government bonds funds and mortgage-backed securities.