The Singer & Friedlander name is returning to Birmingham - under the banner of its new owner, Icelandic investment banking group Kaupthing.
The move, revealed exclusively to The Birmingham Post yesterday represents another major boost for the city's already-strong financial services sector.
Kaupthing expects to have a "major regional office" up and running by the summer, with the operation to be headed by a man well-known in Birmingham professional circles, former Bank of Scotland regional director Trevor Foster.
Kaupthing, which has been expanding aggressively out of its traditional Scandanavian markets in recent years, bought London-based S&F for £547 million in early in 2005 and now trades as Kaupthing Singer & Friedlander.
S&F's old Birmingham wealth management operations began crumbling in August 2003, when five of its staff defected to Laing & Cruickshank amid claims that some of them had been forced to work in a disused store room and denied contact with the outside world.
Later that year the investment director in charge of the office, the highly respected Tom Nash, quit after 18 years service to join Morgan Stanley Quilter in Birmingham and the office was ultimately closed.
Yesterday's announcement is being interpreted as the arrival in Birmingham of Kaupthing, rather than a return by S&F.
Kaupthing's much bigger and more extensive operations in the city will initially focus on three banking divisions - corporate and structured finance, property, and a dedicated private banking/wealth management service.
Kaupthing is represented in ten countries across Europe, Scandinavia and Iceland and has 2,600 employ-ees, 700 of whom are in the UK.
The bank has a market capitalisation of 6.6 billion euros (£4.5 billion) and recently announced record profits of just under one billion euros (about £750 million).
It said its new new mid-market integrated investment banking service is aimed at the West Midlands' entrepreneurial set and fast-growing companies.
Mr Foster will be launching the bank with three well known banking figures heading up each division and intends to be fully operational by this summer.
A deal to secure a long-term lease on about 4,000 sq ft of office space in Birmingham's professional quarter is expected to be completed soon.
"This is strong evidence that we are setting up in Birmingham and are here to stay," Mr Foster said.
"We will be recruiting staff at all levels and I anticipate we will have 20-30 staff based in Birmingham within two to three years.
"As well as focusing on corporate, property and private banking, our Birmingham office will also be the gateway to all the Kaupthing services available through our London office at One Hanover Square."
These include treasury, investment management, asset finance, investment banking and capital markets.
But it is the Kaupthing approach that Mr Foster believes will differentiate the newcomers from the standard High Street and other investment banks.
"Kaupthing is a relatively young and growing bank, nearing 25 years old, with a forward thinking management team and a far more entrepreneurial and client-friendly spirit than perhaps most clients have been used to," he said.
"We encourage our people to take a business view, a more commercial view, rather than a strict banking view, of deals and opportunities that are presented to us.
"We understand the entrepreneurial spirit and this is reflected in the strong relationship focused service that we provide which is both bespoke and flexible."
Mr Foster, who was appointed managing director of banking at Kaupthing in the summer of 2006, has maintained his links with Birmingham and is a non-executive director of Marketing Birmingham and Birmingham Forward.