Bank of America today announced it will merge with FleetBoston Financial for slightly less than $47 billion in stock. Robert Stickler, a spokesman for Bank of America, said details on combining the two banks' asset management divisions still need to be worked out. However, Brian T. Moynihan, who headed FleetBoston's asset management arm, was named president of the wealth management business. Richard DeMartini, head of Bank of America's asset management unit, will retire.
What will become of the mutual fund and institutional asset management businesses also remains to be seen. FleetBoston's money management unit, Columbia Asset Management, is headed by CEO Keith Banks. Bank of America's mutual fund and institutional money management unit has been without a CEO since Robert Gordon stepped down in September following allegations by Eliot Spitzer, New York attorney general, that he was involved in approving mutual fund late trading and market timing. Charles Salmans, a spokesman for Columbia, could not be reached by press time for comment.