By Michael Calia
U.S. Bancorp on Monday said it agreed to buy a document
custodian business from Ally Financial Inc.'s Ally Bank.
Terms of the deal, expected to close during the second quarter,
weren't disclosed.
U.S. Bancorp's U.S. Bank already operates a document custodian
unit--which stores and safeguards various loan files, including
mortgages and leases--through its global corporate trust services
division.
The acquisition will add as many as 40 employees to U.S. Bank,
along with a new location in Waterloo, Iowa. It will also increase
the bank's documents under custody by 15%.
The move follows Ally Financial's initial public offering last
week, in which the U.S. Treasury Department scaled back its stake
in the company to 17% from 37%. The government bailed out the
former General Motors Co. financing business for $17.2 billion
during the financial crisis.
Minneapolis-based U.S. Bancorp, meanwhile, has had to contend
with recent declines in mortgage-banking revenue and net interest
margin.
Write to Michael Calia at michael.calia@wsj.com
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