Bank of America could cut down on its wealth management division as part of a plan to reduce costs by an additional $3 billion. The company will review its banking, trading and wealth management businesses between now and April, CEO Brian Moynihan told employees.
The Investment Management Consultants Association's annual consultants conference, which will be held in New York City Jan. 30-31, will feature presentations by investment strategists Milton Ezrati of Lord Abbett & Co., Jonathan Golub of UBS, Burt White of LPL Financial and Carmen Reinhart of the Peterson Institute for International Economics. "What’s unique about the IMCA conference is that we will have exhibitors and sponsors, but there are no ‘pay to play’ presentations," says IMCA Executive Director Sean Walters. "We’re one of the only conferences in the industry that uses peer-driven content."
Bipartisan support is growing in Congress for legislation to scale back carried interest on private equity investments. The proposal has gained steam since presidential candidate Mitt Romney revealed his tax rate was about 15% as a result of the tax treatment. Republicans and Democrats are now calling for higher taxes on private equity investors.
American and European family offices chose to make tactical changes rather than strategic ones after the recession, a Cambridge Associates survey found. The most common changes included increasing liquidity, rebalancing portfolios, reducing risk and making more cash flow projections. About 75% of respondents said they've increased oversight of outside advisers. Meanwhile, only about 25% of family offices made strategic changes such as raising allocations to hedge funds and decreasing public equity holdings.