INVESTORS FLEE U.S TRUST SHARES, BUT WORRIES MAY BE MISPLACED: GOOD STOCK IN BEAR MARKET, ANALYSTS SAY

Crain's New York Business, August, 1998 by ISIDORE, CHRIS

Wall Street cheered when U.S. Trust Corp. released better-than-expected earnings last month, adding more than 10% to its stock price. But when the market started its slide, investors fled, assuming that a bear market would pummel earnings at the private bank that serves as an investment manager to wealthy clients.

Those fears may not be justified. The bank held on to its profits during the bear market of 1987, and analysts expect it to continue to post gains in earnings per share in all but the worst market environment. Spinoff helped A spinoff of its securities processing business to Chase Manhattan Bank in 1995 and a series of small acquisitions of small investment managers across the country has left U.S. Trust with its fee-rich business of managing large...

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