Price granted charter for thrift

Investment company will sell certificates of deposit through S&L

July 24, 1999|By Bill Atkinson | Bill Atkinson,SUN STAFF

T. Rowe Price Associates Inc. won approval yesterday to operate a federal savings and loan that will allow it to offer certificates of deposit nationwide.

The new T. Rowe Price Savings Bank, based in Baltimore, will not make loans or sell mutual funds, according to the Office of Thrift Supervision, the Treasury Department agency that regulates federal savings and loans.

"We just want to round out the range of investment services and savings opportunities for individual investors," said Steven E. Norwitz, a spokesman for the Baltimore mutual fund company. "So, people who want a deposit-type of account will have it here with their investment accounts."

Price, which managed $150 billion in assets for clients as of March 31, will market the CDs through the mail and over the telephone, according to the Office of Thrift Supervision.

The company must stick to its business plan, and any changes in strategy must be cleared with the regulator.

Norwitz said he is not sure who will head the savings bank. "It is going to be a while before we are going to be able to offer and develop these services. It is probably going to be several months."

Price filed the application in October, several months after competitor Legg Mason Inc. applied for a federal savings and loan charter.

The Baltimore brokerage and money management company received a savings and loan charter in May, allowing Legg to offer trust products to customers nationwide through Legg Mason Trust Bank.

Pub Date: 7/24/99

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