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Bank of America Making Presence
in Boston
09.23.2004
Bank of America Corp., which endured sharp
cries of broken promises from state officials after it cut jobs
at former Fleet branches, announced Thursday that it would move
its wealth and investment management business to Boston.
The move concentrates one of the company's
four major business lines in the city and seeks to reassure
Massachusetts officials that the company, which completed its
acquisition of FleetBoston Financial Corp. in April, is committed
to the Northeast.
Under the plan, key executives and supporting
staff will join Brian Moynihan, president of wealth and investment
management, in Boston.
"We know that Boston is the ideal home
for this business, which will be a significant growth engine
for our company in the future," said Ken Lewis, chief executive
and president.
The wealth and investment management business
has more than $690 billion in client assets under administration,
including $440 billion in assets under management.
Lewis said the move is part of a vision outlined
a year ago by chairman former Fleet CEO Chad Gifford to ensure
that Boston played a significant role in the merged banks.
The wealth and investment management business
and supporting staff units have been located in other parts
of the Charlotte, N.C.-based company's franchise.
The $48 billion merger of Bank of America
and Fleet was the latest in a series of banking mergers nationally
that have led to job cuts aimed at helping the newly combined
banks become more efficient.
Bank of America has said it will be early
in 2006 before steps to integrate the two banks' operations
are complete.
Criticism of Bank of America grew after August
layoffs at former Fleet branches and the company's refusal to
disclose specific job-cut figures. Media reports suggested hundreds
were being laid off, and some officials complained that the
bank broke pre-merger promises to maintain employment levels.
Lewis later disclosed 135 branch positions were cut in Massachusetts.
Treasurer Tim Cahill, who had threatened to
withdraw $120 million in state business, did not immediately
return a call for comment Thursday.
Bank of America shares fell 26 cents Thursday
to $43.66 in midday trading on the New York Stock Exchange.
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