| Quest
for Synergy
By Steve Klinkerman
— Royal Bank of Canada's
John Cleghorn is making strides with his universal bank,
which blends banking, insurance, securities and trust.
But he says merging disparate cultures and operations
requires tremendous discipline and effort.
Stay,
Fold or Draw
By Jerry D. Craft
— Status quo credit card strategies no longer suffice,
says consultant Jerry D. Craft, and some players should
fold. While many banks can still find profits in cards,
he says, different methods must be used to capture them.
Momentum
Builds
1997 opened with a bang as Banc One Corp. purchased First
USA Inc. and Dean Witter, Discover & Co. joined with Morgan
Stanley Group. Analysts foresee a continued robust year
for mergers, so long as market trends persist.
The Price
of Growth
Banc One Corp. paid dearly for First USA Inc., and credit
quality could prove troublesome later. But Banc One merger
chief William P. Boardman says the credit card giant's
blistering growth rate justified a $7 billion price tag.
Q&A: Deals
On Tap
Attorney H. Rodgin Cohen says bank merger activity will
probably surpass 1996. Bank-on-bank deals will predominate,
says the Sullivan & Cromwell lawyer, but annuities underwriters
and regional brokerages also could be targets.
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