BNP Paribas Buys BofA Prime Brokerage

Jun 10 2008 | 2:14pm ET

Five months after putting its prime brokerage up for sale, Bank of America has finally found a buyer.

BNP Paribas, France’s biggest bank, has agreed to buy the unit, instantly making it one of the largest prime brokers in the U.S. BofA has more than 500 hedge fund clients at its prime brokerage, which employs 300. The deal, which is expected to close in the second half, will see BofA prime brokerage’s client relationships, employees and technology systems transferred to BNP.

“BNP Paribas has all the capabilities to become a leader in the prime brokerage industry, including a double-A-plus credit rating, strong balance sheet, global platform and market-leading derivatives business,” Todd Steinberg, head of equities and derivatives in the Americas at BNP, said. “The combination of BNP Paribas’ strengths and this excellent equity prime brokerage platform will create a powerful new player in the industry.”

Terms of the deal were not disclosed.

BofA said in January it would sell the prime brokerage business, as the bank sought to cut its investment banking operations. At the time, Brian Moynihan, head of corporate and investment banking at the Charlotte, N.C.-based firm, said BofA prime brokerage’s “return attributes… are not so strong.” The division has also been wracked by a series of high-level departures.

RELATED STORIES

Bank Of America To Sell Prime Brokerage
Not So Fast: Citadel Not Buying BofA Prime Brokerage
BofA Prime Brokerage Chief Quits


In Depth

High Time For A Cannabis Hedge Fund?

Sep 30 2014 | 7:07am ET

Launching a hedge fund is always a gamble, but Leslie Bocskor's decision to launch...

Lifestyle

Griffin Donates $1M To Rauner's Illinois Gov. Campaign

Sep 22 2014 | 9:29am ET

Hedge fund billionaire Kenneth Griffin definitely has a dog in this fight. The Citadel...

Guest Contributor

Appraisal Ratio Key To Evaluating Hedge Funds And Other New Investments

Sep 29 2014 | 3:07pm ET

As a former finance professor Peter Hecht experiences heartburn every time he hears...

 

Videos

Editor's Note

    Must Attend Hedge Fund Charity Events For October

    Sep 30 2014 | 9:29am ET

    The crisp Autumnal days of October are upon us, and so are a few of the hedge fund industry’s favorite charitable events. If you have never been to Rocktoberfest, well, you are missing out. And for a quieter evening of sipping and socializing, stop by HFC’s Wine Soiree. Read more…

 

Futures Magazine

September 2014 Cover

High frequency market making

High frequency trading is not evil, it is not a conspiracy and it really is not new; it is the natural evolution of the professional trading community making markets, providing liquidity and hopefully...

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.