Bank of America put its prime broker up for sale about five months ago. FINalternatives reports it just recently inked a deal to sell it to BNP Paribas, which apparently has its sights on what remains a fast growing market in the United States. Bank of America's prime broker was, of course, not a premier player. It ranked firmly in the second or third tier in the pack, chasing Morgan Stanley and Goldman Sachs. But it had about 500 hedge fund clients, which is nothing to sneeze at. With the demise of Bear Stearns, the prime brokerage landscape may be changing. And there may be plenty of opportunities for a newcomer to carve out a niche. (One example: Citigroup has recently carved out a specialty as a stock lender). Identifying such a niche, however, may be hard, given intense competition. Retaining the lion's share of the individual clients' business will remain key.   

For more:
- here's the FINalternatives article

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