Barclays sells US mortgage operation
Thursday 02 February 1995
The business being sold is BarclaysAmerican/Mortgage (BAM) which lost £236m in 1993, including a depreciation charge of £265m, and which returned to the black last year, making £4m. Barclays has agreed to sell it to Norwest Mortgage for an undisclosed sum.
Barclays' shares in London rose 8p to 587p yesterday.
In the US most mortgages originated by financial institutions are securitised and sold to investors, who in effect become the lenders.
The process of the collection of principal and interest paid by the home owner to the investor is managed by mortgage banks such as BAM, whether they have originated the loans themselves or bought the right to adminiser them from another financial institution.
Barclays has over the last few years been winding down its unsuccessful retail operations in the US and has handed over direction of all North American business to BZW in order to concentrate on corporate and institutional clients.
Barclays has disposed of all its retail banking operations in the US, its asset-backed finance business and the factoring arm.
Richard Webb, Barclays' chief executive officer in North America, said: "Barclays strategy in the US is to concentrate on serving investment banking clients, particularly those whose requirements are global."
- 1 Rihanna 'nude photos' claims emerge on 4Chan as hacking scandal continues
- 2 Frank Lampard equalises for Manchester City against Chelsea: how the internet reacted
- 3 Stamford Hill council removes 'unacceptable' posters telling women which side of the road to walk down
- 4 Kim Kardashian 'nude pictures' leaked on 4chan weeks after Jennifer Lawrence 'The Fappening' scandal
- 5 Hitler’s former food taster reveals the horrors of the Wolf’s Lair
Rihanna 'nude photos' claims emerge on 4Chan as hacking scandal continues
Kim Kardashian 'nude pictures' leaked on 4chan weeks after Jennifer Lawrence 'The Fappening' scandal
Scotland could still declare independence – even without referendum, says Alex Salmond
Jennifer Lawrence leaked 4Chan sex video branded 'fake' by forum users
Britain First picture: Photographer 'horrified' after first Afghan policewoman killed by Taliban used for 'ban the burka' campaign
Scottish independence referendum: A nation divided against itself
Scottish referendum results: Cross-party consensus collapses amid Tory-Labour spat on the 'English question'
Scottish independence: David Cameron is becoming the 'George Bush of Britain'
Hilary Mantel 'should be investigated by police' over Margaret Thatcher assassination story, says Lord Bell
Plebgate MP Andrew Mitchell called officer a 'little s**t', claim court documents 'exposing ex-Chief Whip's 'record of abusing police'
Archbishop of Canterbury admits doubts about existence of God
iJobs Money & Business
£400 - £450 Per Day: Clearwater People Solutions Ltd: **URGENT CONTRACT ROLE**...
Up to £100k or £450p/d: Saxton Leigh: My client is a leading commodities tradi...
£320 - £330 per day: Ashdown Group: The Ashdown Group have been engaged by a l...
To £75,000 + Pension + Benefits + Bonus: Saxton Leigh: My client is looking f...