JPMorgan (JPM), Wells Fargo (WFC) in Winning Bid for Massive U.S. Loan Portfolio
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Late Friday JPMorgan (NYSE: JPM), Wells Fargo (NYSE: WFC), and Lone Star funds submitted the winning bid for a massive portfolio of U.S. real estate loans from now-delisted Anglo Irish Bank.
According to Bloomberg, the trio will take on the portfolio of $9.65 billion in U.S. loans. It wasn't disclosed what the consortium bid for the assets, though some speculate 80 cents on the dollar would be a good price. Blackstone (NYSE: BX) is also said to have been a winning bidder on a portion of the loans.
Texas-based distressed mortgage investor Lone Star will acquire about half the portfolio, which contains the subperforming and underperforming assets. Wells Fargo and JPMorgan will split the other half.
Anglo Irish had been looking to unload the portfolio ever since the Irish government took control of the bank in January 2009. The sale is expected to be complete before the end of 2011.
Shares of JPMorgan and Wells Fargo are trading about 1.6 percent and 1.3 percent higher Monday, respectively.
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According to Bloomberg, the trio will take on the portfolio of $9.65 billion in U.S. loans. It wasn't disclosed what the consortium bid for the assets, though some speculate 80 cents on the dollar would be a good price. Blackstone (NYSE: BX) is also said to have been a winning bidder on a portion of the loans.
Texas-based distressed mortgage investor Lone Star will acquire about half the portfolio, which contains the subperforming and underperforming assets. Wells Fargo and JPMorgan will split the other half.
Anglo Irish had been looking to unload the portfolio ever since the Irish government took control of the bank in January 2009. The sale is expected to be complete before the end of 2011.
Shares of JPMorgan and Wells Fargo are trading about 1.6 percent and 1.3 percent higher Monday, respectively.
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