BANKING/FINANCE
CommerceBank’s Switch: CommerceBank has ended talks to acquire a small Irvine company that acts as a custodian of money and has instead hired the firm’s owner to build the bank’s in-house custodial services.
CommerceBank hired Scott Purcell, former president and chief executive of Newport West Custodial Corp., and four of the firm’s seven other employees, Purcell said. The other three employees will wind down Newport West’s business, and at least one will join the bank in about a month, he said.
A custodial operation executes the deals made by others, such as brokerages and insurance companies. It collects money and makes payments for a range of commercial transactions and earns its money from a portion of the interest or fees it collects.
Raymond E. Dellerba, CommerceBank’s president, said few banks have custodial operations, even though such divisions fit well with a banking operation.
Newport West services $400 million in money and monetary equivalents, such as stocks, Purcell said. It will not accept any new business.
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