LaSalle Bank has hired three executives away from a Bank One subsidiary to help it establish a similar one at LaSalle offering real property and personal property exchanges for high-net-worth customers.
Suzanne Goldstein Baker, who has been named to head the subsidiary as president, was director of Bank One Exchange Corp. in Chicago. The other two executives, Nancy Scott-Rudnick and Jerome A. Waller, worked under her at Bank One and will do so in their new jobs. All three left Bank One last week and are now at LaSalle.
The Chicago subsidiary of the Dutch banking company ABN Amro said LaSalle Exchange Corp. will facilitate tax-deferred exchanges of real estate, and that the exchanges will yield substantial tax savings.
Norman Bobins, chairman, president, and chief executive officer of $47 billion-asset LaSalle Bank, said in a news release: "We are continually striving to offer the best products and services to our customers, and LaSalle Exchange Corp. is part of that philosophy. Now, clients wanting to execute a like-kind exchange can conduct their transaction with LaSalle."
A real estate or personal property exchange corporation lets taxpayers sell a property or an investment asset and replace those assets without triggering recognition of gain on that sale. Under Section 1031 of the Internal Revenue Code, owners can defer capital gains taxes as long as the money is put in escrow with an intermediary such as Bank One or LaSalle.
"This is a business that is all about security, and as a customer you have to trust an intermediary," Ms. Baker said in an interview. "There are few banks stronger than ABN Amro. With their size and capitalization, consumers can withstand any kind of problem."
She and the other two left Bank One Exchange because "we saw a better opportunity with LaSalle and with ABN Amro," Ms. Baker said. "This has to do with us doing what was best personally for our careers and professionally for our business."
Bank One spokesman Thomas Kelly said the trio's slots have been filled.
"We really don't see these defections as having any effect on our exchange business whatsoever," Mr. Kelly said.
Ms. Baker, 47, was Bank One Exchange's director for six years. Previously she worked at Comerica Bank for four years and American National Bank for 12 years.
Ms. Scott-Rudnick, 51, was a manager at Bank One Exchange for five years. As assistant vice president at LaSalle Exchange, her duties include administering exchanges.
Mr. Waller, 40, was an assistant administrator at Bank One for seven years.