U.S. Bancorp (NYSE: USB) announced today that its lead bank, U.S. Bank National Association, has entered into a definitive agreement to purchase the municipal bond trustee business of Deutsche Bank.
Expected to close in the third quarter of 2013, the transaction will add approximately $57 billion to the more than $3 trillion in assets currently under administration within U.S. Bank’s corporate trust division. U.S. Bank has approximately 125,000 trust and agency contracts. The Deutsche Bank transaction will add another 1,100 contracts. Terms of the agreement are not being disclosed.
“This transaction complements the existing U.S. Bank municipal bond trustee business and will further strengthen our position as the #1 provider of municipal trustee and agency services in the nation,” states Bryan Calder, president, U.S. Bank Global Corporate Trust Services. “This acquisition is consistent with U.S. Bank’s ongoing commitment to continued strategic business investments and its commitment to corporate trust services.”
This transaction will build upon key U.S. municipalities and regions of U.S. Bank’s global corporate trust business 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,” states Terry McRoberts, executive vice president, U.S. Bank Global Corporate Trust Services.
Satvinder Singh, Deutsche Bank Head of Trust & Securities Services and Cash Management for Financial Institutions said, “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. We feel we have achieved our objective with our partner, U.S. Bank, with whom Deutsche Bank has an excellent existing working relationship.”