Hanging on to the old money

Jim Macdonald commented here on the importance of private banking to the the future Bank of New York Mellon. Today's Wall Street Journal confirms his observations with this short piece ($), which, although interesting, doesn't really have much news in it. Perhaps it is the product of some diligent PR people.

Mellon's wealth management group oversees some $92 billion for wealthy families, while BoNY manages $60 billion. None of the client contact folks at either bank are in jeopardy from the merger, according to the article, because keeping that staff is one key to keeping clients happy. There's already enough pressure from the younger generation for finding new financial advisors without increasing the churn of the bank's contact people.

"It is a goal of every financial adviser, every private bank, every community foundation and every charity to retain a connection to the next generation to help them achieve their goals," says Paul G. Schervish, director of the Center on Wealth and Philanthropy at Boston College.

In a conference call with investors, Robert P. Kelly, Mellon's president and chief executive, said the banks would work hard to keep clients through the merger: " 'Lose no customers' is our rallying cry."