Barclays buys Wachovia unit for $469M

Jun 23, 2006 @ 12:01 am

By Aaron Siegel

Barclays Plc. announced yesterday that it concluded an agreement to purchase HomEq Servicing Corp. from U.S. bank Wachovia Corp. for $469 million.

HomEq Servicing Corporation, based in North Highlands, Calif., collects mortgage payments from sub-prime borrowers who usually have blemished credit histories.

Barclays said it will pay for HomEq's business with cash and will use the newly acquired company to bolster its mortgage-backed securities business in the United States, which it began to build in 2004.

"It has become clear during the last year that HomEq's long term prospects for success would be better served by a broader strategic approach to the sub-prime mortgage sector," said Mary Beth Navarro, spokeswoman for Wachovia. "That approach to HomEq is not consistent with Wachovia's strategic direction."

Charlotte, N.C.-based Wachovia, the fourth largest U.S. bank, agreed to pay $25.5 billion last month for Golden West Financial Corperation, a savings and loan in Oakland, Calif. (InvestmentNews, May 8) .

0
Comments

What do you think?

View comments

Recommended for you

Sponsored financial news

Latest news & opinion

Advisers go on the offensive, getting clients ready for the next market correction

Some proactive planners are spelling out for clients the impact of a 10% or 20% correction.

Acosta declines to extend delay of DOL fiduciary rule

Labor Secretary finds no legal basis to delay implementation; rule to become applicable June 9

Phyllis Borzi says opponents of DOL fiduciary rule face uphill climb to further delay or dilute it

Former assistant Labor secretary who crafted the rule says President Trump won't be able to get rid of it simply because he doesn't like it.

Shrinking talent pool puts strain on advisory firms

Attrition, cuts in training programs and new competition make it difficult to fill job openings

Trump miscues, more cash becoming available will drive summer muni bond rally

As Trump agenda derails, municipal bonds are benefitting from flight to safety as well as a mismatch between bonds maturing and new issues.

X

Subscribe and Save 60%

Premium Access
Print + Digital

Learn more
Subscribe to Print