Acquisitive USBancorp (USB) is keen to increase the range of services it offers to its public finance customers, who frequently use letters of credit (L/Cs) to improve liquidity.

The bank's February 2001 merger with Firstar created the eighth largest US bank in terms of assets and has provided USB with new or better gateways to territories like Cincinnati, St. Louis and Chicago.

The bank has been building its customer base of public sector clients over recent years. In 1998 it acquired a clutch of municipal customers when it bought Piper Jaffray.

UBS has identified L/Cs as one of several bank facilities of specific interest to public finance clients who would be offered a range of banking and underwriting services along with credit facilities.