Royal Bank of Canada Buys U.S. Discount Broker
December 17, 1998
Royal Bank of Canada Buys U.S. Discount Broker
MONTREAL, Dec. 17 /CNW/ - Royal Bank of Canada (NYSE: RY) and Bull & Bear Group, Inc. (NASDAQ: BNBGA) announced today that they have entered
into an agreement whereby Royal Bank will acquire Bull & Bear Securities, Inc., a New York-based discount broker and a wholly owned subsidiary of Bull & Bear
Group, Inc. The transaction, which is subject to the approval of regulatory authorities in Canada and the United States, is valued at approximately U.S.$6 million. As
part of its agreement with Royal Bank, Bull & Bear Group, Inc. will also transfer its rights to the Bull & Bear name and subsequently change its name and the names
of its other subsidiaries and affiliates.
''Bull & Bear provides us with an excellent entry point into the U.S. discount brokerage market and reinforces our strategy to build a competitive, integrated North
American wealth management platform,'' said W. Reay Mackay, vice-chairman, Royal Bank of Canada. ''We plan to invest additional funds into marketing and
technology to achieve aggressive market growth and create efficiencies.''
With one of North America's largest national retail banking operations, Royal Bank of Canada will apply its expertise, particularly in marketing and discount
brokerage services, to build upon Bull & Bear Securities' existing business.
''We believe Bull & Bear Securities customers will benefit enormously by our association with Royal Bank. In addition to the confidence of the backing of the largest
bank in Canada, customers should enjoy enhanced discount brokerage services,'' said Mark C. Winmill, president and chief executive officer of Bull & Bear
Securities.
Bull & Bear Securities, organised in 1984, has access to every major U.S. stock, option and bond exchange. Its highly-ranked website, www.bullbear.com,
provides internet securities trading featuring low flat rate commissions coupled with real time quotes, news, charts, and free research. In addition, Bull & Bear
Securities' customers receive American Airlines AAdvantage miles for every trade and for many other investing activities.
Bull & Bear Securities is registered with the Securities and Exchange Commission as a broker/dealer and is a member of the National Association of Securities
Dealers, Inc. and Securities Investor Protection Corporation. Bull & Bear Securities' main office is located in New York City and it has a branch in Boca Raton,
Florida. It has 25,000 accounts representing U.S. $300 million in investor assets.
''We see excellent growth opportunities in both the United States and Canada for discount brokerage. This acquisition fits well strategically with the services we
provide through Security First Network Bank. We can offer our U.S. clients a reliable and competitively priced service which employs technology that is compatible
with our existing systems,'' noted Michael Bastian, president and CEO of Royal Bank Action Direct.
Royal Bank Action Direct is the second largest discount broker in Canada and, with 300,000 accounts, ranks among the top 10 discount brokerage firms in North
America.
Royal Bank of Canada recently acquired Atlanta-based Security First Network Bank (SFNB), the world?s first Internet bank. SFNB is an FDIC insured federal
savings bank which provides customers across the United States with savings and transaction accounts, certificates of deposit, ATM services, credit card, electronic
bill payment, and integrated customer statements over the Internet. Its service delivery capabilities also include a call centre channel as well as physical premises in
Atlanta.
In an unrelated transaction, Royal Bank of Canada also recently acquired the North American private banking business of Credit Suisse further developing its U.S.
client base.
Royal Bank of Canada (ticker symbol: RY) is Canada's premier global financial services group and a leading provider of personal and business banking, corporate
and investment banking, and wealth management services. As one of North America's largest financial institutions, Royal Bank and its key subsidiaries Royal Trust,
RBC Dominion Securities, RBC Insurance, and Royal Bank Action Direct have 60,000 employees who serve 10 million clients through more than 1,500 branches
and offices in 36 countries.
For further information: Paul J.S. Wilson, Royal Bank of Canada, (416) 974-6286; Michael A. Bastian, President & CEO, Royal Bank Action Direct, (905)
764-4402; Bassett S. Winmill, Chairman, Bull & Bear Group, Inc., (732) 741-8800; Raymond Chouinard, Royal Bank, (514) 874-6556
This Report Updated by Canstock at 13:18:40 Pacific Time |
