TowneBank, which opened last spring with branches in Portsmouth, Chesapeake and Virginia Beach, also is likely to add offices. After decades of debate, Congress passed legislation last year allowing banks, brokerage firms and insurers to cross into each other's business. Absolutely,'' he said. Meanwhile, a group of community banks in the state, including Bank of Tidewater in Virginia Beach, has been shopping for an insurance agency. Banks won't be the only acquirers.
Brokerage firms are likely to compete more aggressively with commercial banks for trust services.
In a major development, the parent of discount brokerage firm Charles Schwab recently announced plans to buy U.S. Trust Corp., a New York banking company with a significant money-management operation.