Bank of America, now the world’s largest wealth management firm, said yesterday it had agreed to sell First Republic Bank, a private bank it inherited from Merrill Lynch, to a group of investors.

The buying group is led by private-equity firms General Atlantic and Colony Capital. As part of the deal, the bank's top management, including founder and chairman James Herbert will stay with the firm.

Terms of the transaction were not disclosed. The deal is expected to conclude in the second quarter of next year, according to a statement from BoA.

Questions about First Republic's future have swirled ever since Bank of America agreed in September 2008 to buy Merrill Lynch. Bank of America already had a wealth-management business, US Trust, which was acquired from Charles Schwab.

First Republic was acquired on in January along with the Merrill Lynch acquisition. As of 30 Septembeer, 2009, First Republic had $19 billion in total assets, $16 billion in deposits, and $15 billion in wealth management assets under management.