U.S. Bancorp, the nation’s fifth largest commercial bank, is moving forward with plans to purchase the municipal bond trustee business of Deutsche Bank. The terms of the agreement were not disclosed.
The Minneapolis-based bank announced Monday that its subsidiary, U.S. Bank, has entered into a definitive agreement with Deutsche Bank and is expected to close the transaction in the third quarter of 2013.
“This transaction complements the existing U.S. Bank municipal bond trustee business and will further strengthen our position as the number one provider of municipal trustee and agency services in the nation,” Bryan Calder, president of U.S. Bank Global Corporate Trust Services, said in a statement today.
The bank said that the acquisition will add approximately $57 billion to more than $3 trillion in assets currently under administration within U.S. Bank’s corporate trust division. It will also add 1,100 trust and agency contracts to U.S. Bank’s approximately 125,000 contracts.
“Our main goal with this transaction was to find a partner that will continue to deliver the highest quality services to our municipal trust clients, enabling us to sharpen our focus on our existing award winning global trust business,” said Satvinder Singh, Deutsche Bank head of trust and securities services and cash management for financial institutions. “We feel we have achieved our objective with our partner, U.S. Bank, with whom Deutsche Bank has an excellent existing working relationship.”
U.S. Bancorp said the transaction will build upon key U.S. regions of U.S Bank’s global corporate trust businesses including California, Mississippi, New York, Tennessee, and Texas.
“The U.S. Bank team will work closely with Deutsche Bank to ensure a seamless transition and is committed to providing our new customers with the same high level of quality services our current U.S. Bank corporate trust customers have come to expect,” said Terry McRoberts, executive vice president, U.S. Bank global corporate trust services.
U.S. Bank’s global corporate trust services department serves private and public companies, government and tax-exempt entities, and financial services companies. The group operates a network of 48 domestic offices and three international locations in Buenos Aires, London, and Dublin, Ireland.