Bank of America is to buy US Trust, the private-banking unit of Charles Schwab, for $3.3 billion in cash, so as to be in a better position t...

Bank of America is to buy US Trust, the private-banking unit of Charles Schwab, for $3.3 billion in cash, so as to be in a better position to compete for high net worth clients. The acquisition will create a division with $261 billion in assets, the Charlotte, North Carolina-based bank said in a statement. For Charles Schwab, the sale marks the end of a strategy to cater to the high net worth market. Peter Scaturro, who became chief executive officer of US Trust in May 2005, will head up the private banking business at Bank of America and report to Brian Moynihan, head of the wealth and investment management unit. Mr Scaturro was previously head of Citigroup private bank. Wealth and investment management accounted for about 10 per cent of Bank of America's third-quarter net income. A quarter of the division's revenue this year has come from serving clients with $3 million to $250 million in assets to invest.