Bank of America Sells Securitization Unit to US Bancorp
Special to CNBC.com
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.