wsj_0927.xml

WSJ891026-0131 WSJ891026-0131 = 891026
= 891026
891026-0131 . 891026-0131 . Who 's News : @ U.S. Trust Names @ Schwarz Chief , @ Maurer President @ ---- @ By James T. Areddy @ Staff Reporter of The Wall Street Journal Who 's News : @ U.S. Trust Names @ Schwarz Chief , @ Maurer President @ ---- @ By James T. Areddy @ Staff Reporter of The Wall Street Journal 10/26/89 10/26/89
10/26/89
WALL STREET JOURNAL ( J ) WALL STREET JOURNAL ( J ) USTC WNEWS USTC WNEWS NEW YORK NEW YORK H. Marshall Schwarz was named chairman and chief executive officer of U.S. Trust Corp. , a private-banking firm with assets under management of about $ 17 billion . Mr. Schwarz , 52 years old , will succeed Daniel P. Davison Feb. 1 , soon after Mr. Davison reaches the company 's mandatory retirement age of 65 . Mr. Schwarz , who is president of U.S. Trust , will be succeeded in that post by Jeffrey S. Maurer , 42 , who is executive vice president in charge of the company 's asset-management group . U.S. Trust , a 136-year-old institution that is one of the earliest high-net worth banks in the U.S. , has faced intensifying competition from other firms that have established , and heavily promoted , private-banking businesses of their own . As a result , U.S. Trust 's earnings have been hurt . But Mr. Schwarz welcomes the competition in U.S. Trust 's flagship businesses , calling it `` flattery . '' Mr. Schwarz says the competition `` broadens the base of opportunity for us . '' Other firms `` are dealing with the masses . I do n't believe they have the culture '' to adequately service high-net-worth individuals , he adds . U.S. Trust recently introduced certain mutual-fund products , which allow it to serve customers with minimum deposits of $ 250,000 . Previously , the company advertised at the $ 2 million level . `` We have always taken smaller accounts , but now we are looking for smaller accounts that will grow , '' Mr. Schwarz says . `` Our bread and butter is still the $ 2 million to $ 20 million account , '' he says . The new services allow U.S. Trust to cater to the `` new wealth , '' Mr. Schwarz says . Quarterly net income this year has risen just over comparable periods in 1988 , when year-end net was below the 1987 level . In this year 's third quarter , for example , net was $ 10.5 million , or $ 1.05 a share , compared with $ 10.3 million , or $ 1.02 a share , a year earlier . Assets as of Sept. 30 fell to $ 2.46 billion from about $ 2.77 billion . `` We will have a reasonably flat year this year , '' Mr. Schwarz says . Mr. Schwarz also said costs associated with U.S. Trust 's planned move to midtown Manhattan from Wall Street will continue to be a drag on earnings through 1990 . Mr. Schwarz 's great-grandfather founded the New York toy store F.A.O. Schwarz , but his family no longer has ties to the company . Mr. Schwarz 's father was a U.S. Trust trustee until 1974 . U.S. Trust also created a four-member office of the chairman , effective Feb. 1 . It will include Messrs. Schwarz and Maurer . Donald M. Roberts , 54 , treasurer , and Frederick S. Wonham , 58 , who takes responsibility for the funds-service group , were named vice chairmen and will serve in the office of the chairman . Mr. Roberts continues as treasurer , and Mr. Wonham remains responsible for the offices of comptroller , planning , marketing and general services . Frederick B. Taylor , 48 , also was named a vice chairman and chief investment officer , a new post . He previously held similar responsibilities . Mr. Taylor also was named a director , increasing the board to 22 , but is not part of the new office of the chairman . James E. Bacon , 58 , executive vice president , who has directed the funds-service group , will retire .