The transaction, which is expected to close in December, is expected to increase U.S. Bancorp's market share in the collateralized debt obligations (CDO) and commercial and residential mortgage-backed securities (MBS) markets. The deal will also establish a presence for the firm in Europe, according to a company press release.
The purchase will provide U.S. Bank with an additional $10 billion in deposits. Its Corporate Trust Services unit will absorb over 2,150 active securitization transactions, about 2.4 million residential and 84,000 commercial mortgage cases and $1.1 trillion in assets under management.
Shares of U.S. Bancorp jumped more than 2 percent Monday. Bank of America shares were up slightly.