Bank Investment Reps May Try to Cash in on Customers
American Banker (11/03/00) Vol. 13, No. 7 p.20; Werlin, Paul A.

With increasing frequency, bank representatives are being asked to build their business without the support of their banks. As a result, the probability that representatives will try to bring their old customers with them when they transfer to a competing bank is higher. Part of the problem stems from the expansion in the sale of brokers' books of business. Proof of this is seen in the high number of Internet start-ups that have been launched to help investment representatives buy, sell, and merge their books of business. The trend has become so pervasive that most bank representatives are now required to sign noncompete agreements to prevent them from soliciting their old clients when they relocate to competing banks or brokerage firms.


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