U.S. Trust CEO Scaturro Will Not Join Bank of America
Peter Scaturro, chief executive of U.S. Trust, won't join Bank of America when the second-largest U.S. bank acquires the private banking arm of Charles Schwab for $3.3 billion.
Bank of America said Scaturro will leave when the transaction closes, expected in the third quarter.
Frances Aldrich Sevilla-Sacasa, the president of U.S. Trust and its No. 2 executive, is the likely replacement for Scaturro, a person close to the matter said.
Scaturro, 47, clashed with Bank of America executives over how the combined private banking operations should be run, the Wall Street Journal said in its online edition, citing unnamed sources.
The companies had projected a March 31 closing when they announced the all-cash transaction in November, but pushed back the closing date in January.
Alexandra Trower, a Bank of America spokeswoman, said in an e-mailed statement: "We thank Peter for his efforts in the early stages of the transition planning process leading up to our recent (Federal Reserve) approval (of the transaction), and wish him the best."
Scaturro and Sevilla-Sacasa could not immediately be reached for comment. A U.S. Trust spokeswoman referred a call to Schwab spokesman Greg Gable, who declined to comment.
Bank of America is based in Charlotte, North Carolina, and Schwab is in San Francisco.
Sevilla-Sacasa joined U.S. Trust in Nov. 2005 from Citigroup , and was most recently head of all client-facing sales professionals. She has close to 25 years in wealth management, and sits on Schwab's executive committee.
Adding the 154-year-old U.S. Trust, known for handling money of well-known families such as the Astors, would vault Bank of America past JPMorgan Chase to the top spot in private banking.
The combined Bank of America and U.S. Trust would have about $267 billion of assets under management, while JPMorgan has about $216 billion.
Schwab is focusing on providing low-cost services to ordinary investors who like doing their own trading.
Scaturro had been ousted by Citigroup in 2004 in an ethics scandal involving that company's Japanese private bank. He was not accused of wrongdoing.