Combined Firm to Operate as BNY Clearing Services LLC
NEW YORK and CHICAGO, Nov. 2 /PRNewswire/ -- The Bank of New York Company,
Inc. (NYSE: BK) and EVEREN Capital Corporation (NYSE: EVR) today announced the
completion of an agreement pursuant to which The Bank of New York acquired an
80-percent interest in EVEREN Capital's EVEREN Clearing LLC subsidiary,
creating BNY Clearing Services LLC. Terms were not disclosed.
EVEREN Capital will retain a 20-percent interest in BNY Clearing Services
LLC, which will seek to accelerate the expansion of EVEREN Clearing LLC's
correspondent business. EVEREN Capital expects to realize a one-time net
after-tax gain of approximately $12 million on the transaction.
As part of the transaction, EVEREN Securities, Inc. has executed an
outsourcing arrangement with BNY Clearing Services LLC, becoming a carrying
broker-dealer. Pursuant to the agreement, EVEREN will clear its trades on an
omnibus basis through, and outsource its clearing, execution and
financing/cash management activities to BNY Clearing Services LLC.
EVEREN's clearing costs will approximate the historical cost of the
operations being outsourced. Accordingly, the transaction will have no
meaningful impact on EVEREN Capital's earnings from continuing operations.
EVEREN Capital Corporation is the fifth largest publicly traded majority
employee-owned company in the U.S. Its principal subsidiary, EVEREN
Securities, Inc., ranks among the 10 largest national full-service brokerage
firms in the industry and serves individual, corporate, municipal and
institutional clients through an integrated network of approximately 1,730
investment consultants in 170 offices. The company combines the capital
markets resources of a large national organization with the personalized
service and dedication of a smaller firm. As of Sept. 30, 1998, EVEREN held
approximately $57 billion of client assets in more than 615,000 active client
accounts. EVEREN is a member of the Securities Investor Protection
Corporation, the New York Stock Exchange and other principal exchanges. For
more information, visit the company's web site at http://www.everensec.com.
The Bank of New York was founded in 1784 by Alexander Hamilton and is the
nation's oldest bank operating under its original name. It is the principal
subsidiary of The Bank of New York Company, Inc. With total assets of over
$63.4 billion as of Sept. 30, 1998, the Company provides a range of banking
and other financial services to corporations and individuals worldwide through
its six basic businesses: Securities Servicing and Cash Processing; Corporate
Banking; Asset Based Lending; Trust, Investment Management and Private
Banking; Retail Banking; and Financial Market Services. Additional
information on the Company is available at http://www.bankofny.com.
SOURCE EVEREN Securities, Inc.
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Related links:
http://www.everensec.com
Company News On-Call:
http://www.prnewswire.com/comp/121760.html or fax,
800-758-5804, ext. 121760
CONTACT:
Media, Wilson Medina, 312-574-5152, or Elise
G. Powell, 312-574-5229, or Investor Relations, Caron L.
Schreiber, 312-574-5724, all of EVEREN Capital Corporation; or
Media, Frank Scarangella, Senior Vice President, 212-437-2820, or
Cary Giacalone, Vice President, 212-635-1590, or Investor
Relations, Nicholas Silitch, Senior Vice President, 212-635-1591,
all of The Bank of New York
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