Bank of America makes Premier unit part of Merrill

FWR Staff

27 March 2009

Grp merger eliminates overlap in concentration on "mass" affluent investors. Bank of America plans to close its Premier Banking line and put its clients on the books of the Global Wealth Management division of its Merrill Lynch subsidiary, according to a memorandum sent to employees of the bank last week.

According to plan

Charlotte, N.C.-based Bank of America's Premier Banking business targets private clients with between $100,000 and $3 million in assets -- which is also Merrill's sweet spot.

Premier Banking relationship managers will become "banking specialists" -- advisors to Merrill's 18,000 advisors on banking products.

Meanwhile, Merrill has hived off or re-assigned roughly 150 middle managers who help run branches. Some of those who have been retained could end up performing similar functions as "analysts."

The move is in keeping with Bank of America's pledge to cut up to 35,000 jobs by 2012. In December 2008, Merrill trimmed about 10% of branch-support staff. Last month, Merrill let go a few hundred novice brokers. -FWR

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