BlackRock agrees to buy $87bn fund from Bank of America

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BlackRock has agreed to purchase an $87bn money-market fund business from Bank of America as it builds scale in an industry grappling with new regulations.

Bloomberg News reports that the deal will involve merging Bank of America money funds and separate accounts into BlackRock’s offerings, the asset manager said Tuesday in a statement.

This will bring BlackRock’s cash-management business to about $372bn in assets.

BlackRock is expanding the business as it contends with interest rates that have remained near historic lows in the wake of the 2008 financial crisis. Managers are restructuring money-market funds to comply with U.S. Securities and Exchange Commission rules that force institutional prime funds to adopt a floating share price. Banks are also dealing with Basel III requirements, which make it more expensive to hold big cash deposits.

To access the complete Bloomberg News article hit the link below:

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