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.