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Merrill seeks to buy mortgage lender -report
Last Update: 1:17 PM ET May 11, 2006
NEW YORK (MarketWatch) -- Merrill Lynch & Co. (MER) wants to buy a mortgage lender and is having "dialogues" with possible targets, Chief Administrative Officer Ahmass Fakahany said in an interview with Bloomberg News.
"When I say mortgage origination will take capital, that's because it requires an acquisition," Fakahany said in an interview Bloomberg said took place last week.
"Building a mortgage capability is a priority," Fakahany told the news service. "You can't just build it out of thin air."
Dow Jones Newswires reported in March that Wall Street firms, hungry for assets to support the lucrative mortgage-backed securities business, are in the market for acquisitions of big issuers of home loans.
As an example, the article quoted people familiar with the matter saying Merrill and other investment banks took a look at North Fork Bancorp Inc. (NFB) due to their interest in its national mortgage lending unit, GreenPoint.
The banks, however, balked at the high price North Fork was seeking. North Fork ultimately was bought by Capital One Financial Corp. (COF) in a cash and stock deal now worth about $14.5 billion.
Fakahany, in his conversation with Bloomberg, confirmed Merrill had been interested in the GreenPoint unit. He also said Merrill will put more capital to work in trading - particularly fixed-income trades in which the bank's own capital is at risk and "statistical arbitrage" strategies for trading stocks - and will triple its investments in other companies within two years.
He also told Bloomberg Merrill is interested in acquiring more regional brokerages like Advest Group Inc., teams of traders and specialized companies with "bank-like" products.
Analysts have speculated Wachovia Corp.'s (WB) cash and stock deal to buy Golden West Financial Corp. (GDW), now worth about $23.6 billion, could spur further deals for companies that issue mortgages.
Other big lenders and frequently mentioned potential targets include Washington Mutual Inc. (WM), Countrywide Financial Corp. (CFC), IndyMac Bancorp Inc. (NDE) and Downey Financial Corp. (DSL).
-Contact: 201-938-5400
Merrill seeks to buy mortgage lender -report
Last Update: 1:17 PM ET May 11, 2006
NEW YORK (MarketWatch) -- Merrill Lynch & Co. (MER) wants to buy a mortgage lender and is having "dialogues" with possible targets, Chief Administrative Officer Ahmass Fakahany said in an interview with Bloomberg News.
"When I say mortgage origination will take capital, that's because it requires an acquisition," Fakahany said in an interview Bloomberg said took place last week.
"Building a mortgage capability is a priority," Fakahany told the news service. "You can't just build it out of thin air."
Dow Jones Newswires reported in March that Wall Street firms, hungry for assets to support the lucrative mortgage-backed securities business, are in the market for acquisitions of big issuers of home loans.
As an example, the article quoted people familiar with the matter saying Merrill and other investment banks took a look at North Fork Bancorp Inc. (NFB) due to their interest in its national mortgage lending unit, GreenPoint.
The banks, however, balked at the high price North Fork was seeking. North Fork ultimately was bought by Capital One Financial Corp. (COF) in a cash and stock deal now worth about $14.5 billion.
Fakahany, in his conversation with Bloomberg, confirmed Merrill had been interested in the GreenPoint unit. He also said Merrill will put more capital to work in trading - particularly fixed-income trades in which the bank's own capital is at risk and "statistical arbitrage" strategies for trading stocks - and will triple its investments in other companies within two years.
He also told Bloomberg Merrill is interested in acquiring more regional brokerages like Advest Group Inc., teams of traders and specialized companies with "bank-like" products.
Analysts have speculated Wachovia Corp.'s (WB) cash and stock deal to buy Golden West Financial Corp. (GDW), now worth about $23.6 billion, could spur further deals for companies that issue mortgages.
Other big lenders and frequently mentioned potential targets include Washington Mutual Inc. (WM), Countrywide Financial Corp. (CFC), IndyMac Bancorp Inc. (NDE) and Downey Financial Corp. (DSL).
-Contact: 201-938-5400
posted by Jones Lang LaSalle NJ News Blog at 10:42 AM
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