SAN FRANCISCO — BankAmerica, continuing to dismantle itself in the wake of staggering losses, Monday agreed to sell its two money-management units to Monarch Capital Corp. of Springfield, Mass.
Terms were not disclosed, although one investment banker who requested anonymity estimated that the company, parent of Bank of America, would report a gain of less than $50 million on the deals.
The two units--BA Investment Management Corp., based here, and BA Investment Management International of London--have a total of about $12 billion under management between them.
The total includes about $5 billion in cash-management accounts and $7 billion in stocks and bonds.
Both companies are well-regarded in the industry, and their sale is another blow to BankAmerica's prestige.
Cash management is a low-margin business, with annual fees averaging about 0.15% of assets under management. Fees range from 0.25% and 0.30% for managing stocks and bonds. Thus, the units generated no more than $28.5 million in revenue for BankAmerica last year.