McClure Seeking Broader Horizons for Northern Trust
John McClured traded his private-banking hat at the Northern Trust Co. last month for a job as head of strategic planning at the Chicago-based company.
In scoping out business potential for the $12 billion-asset company, Mr. McClure said, he will pay "continued attention to opportunities for our trust and private banking expansion." But he wants to increase the bank's corporate trust business by expanding to new regions.
Northern Trust has been aiming for growth in the nation's fastest-growing affluent markets-Arizona California, Florida, and Texas.
On the Trail of California Gold
Last month, the bank bought the trust subsidiary of CalFed Inc., in a deal valued at $65 million. Northern Trust already has a charter allowing it to offer private banking in California.
Mr. McClure replaces Frederick H. Waddell, who moved to California to oversee Trust Services of America, the newly acquired CalFed unit.
Steve Lind, who headed Northern Trust's middle market business, replaces Mr. McClure as head of private banking.
First Interstate Bank Ltd. is teaming up with a U.S. investment-management firm to build business with clients outside the United States.
The wholesale unit of the Los Angeles-based First Interstate Bancorp signed a contract last month with Scudder, Stevens and Clark Inc. to manage U.S. investments by foreigners.
The bank has a similar management arrangement with Banque Private Edmond de Rothschild.
First Interstate Bank Ltd., based in San Francisco, will share investment management fees with Scudder. Joanne Howard, a managing director at Scudder, said fees will be comparable to those currently charged by First Interstate - from 75 basis points to 140 basis points of the amounts managed.
Ms. Howard said the Scudder's median results for all private investment accounts are slightly above the return on the Standard & Poor's S&P 500.
"We think we can provide a much broader variety of investment and deposit services" by offering programs such as the Scudder plan, said Lillian Conrad, vice president and senior portfolio manager of international private banking at First Interstate.
First Interstate is targeting its affluent private customer base in Asia, Mexico, and Latin America.
Barry Sloane doesn't mind spending a lot of time on the road.
When he transferred to New York-based J.& W. Seligman & Co. last year from Bankers Trust, Mr. Sloane, 36, commited himself to visiting at least two prospective clients a week in their offices - whether in midtown Manhattan or midtown Springfield, Mo.
Mr. Sloane joined Seligman last spring as senior vice president in charge of individual account marketing. His goal: to expand the investment management firm's roster of private clients, with a particular forcus on the Forbes 400 list.
Raising the Comfort Level
"Like any market segment, you get to know the players after a while,' Mr. Sloane said. "Gaining access is not the most difficult part."
What's hard, he said, is be there month after month to develop client relationship until they fell comfortable with the trust company. That's where he thinks his 127-year-old firm differs from most banks with private banking divisions. Private banking units. Mr. Sloane said, are not aggressive about following up initial contact with clients.
Mr. Sloane recently traveled to the coast of Maine to woo a client. "It took as long to get there by two planes and two cars as it would to get to Honolulu."
Mr. Sloane was a relationship manager in Bankers Trust's private banking division, overseeing about $600 million in assets. He also has worked at Shearson Lehman Hutton and served a stint as president of Century North Shore Bank is Salem, Mass.
Seligman manages $9 billion in assets, about $1 billion for private clients.