Chase Manhattan is acquiring the corporate trust and escrow business of PNC Bank. Financial terms were not disclosed.
PNC will transfer to Chase 6,000 accounts that represent outstanding debt of about $55 billion, for which PNC serves as trustee or agent. PNC acted as trustee for municipalities and corporations that issued bonds, and was an agent for escrow arrangements.
The sale does not include PNC's institutional trust businesses, which includes employee benefits, pension, 401(k), custody and investment management activities.
The corporate trust business needed an investment of capital that the bank chose to spend in other areas, said Nancy Wolcott, PNC's executive vice president of the institutional trust and investment services.