SAN DIEGO - Though banks entering the securities industry may not be held legally liable when such investments sour, they could be held accountable if they do not warn customers promptly that their portfolios are in trouble.

So says Jonathan A. Wright, senior vice president of wealth management at $33 billion-asset Union Bank of California in San Francisco. Speaking Friday at an investment and trust officer conference sponsored by the California Bankers Association, he said this accountability is just one issue banks have to confront in expanding into brokerage and insurance under the Gramm-Leach-Bliley Act.

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