CIBC selling U.S. brokerage operations, says newspaper report

Relying on unnamed sources, the Globe says CIBC executives have decided to spin off its CIBC Oppenheimer Private Client Division and the board of directors have been asked for permission to solicit offers. Robert Waite, senior VP corporate communications and public affairs at CIBC, has refused to comment on the story. He said it’s standard policy not tocomment on rumours or speculation.

Analysts estimate the business is worth US$250 million to US$300 million for the firm’s 600-odd brokers. CIBC bought Oppenheimer & Co. in 1997 for US$525 million. In a recent presentation to U.S. investors hosted by Keefe, Bruyette & Woods Inc. the bank showed few signs of backing away from its U.S. retail brokerage business.

Wealth management delivered the highest return on earnings of all its divisions. It’s stated priorities for the division to: develop full branch based advisory third party product sales capability through 1800 financial advisors, simplify the offer, and enhance the discount brokerage platform to improve online capability and consolidation platform

“Our objective is to build one of the best-accredited, most professional sales forces in the industry, integrating capability through all relationship-based advisory sales forces, preparing the sales force to sell enhanced product offerings, and expand choice of product offerings,” it said. Admittedly little mention was made of the U.S. operations in this plan.