U.S. Bancorp to Buy Ally Bank's Document Custodian Unit

By Michael Calia 

U.S. Bancorp on Monday said it agreed to buy a document custodian business from Ally Financial Inc.'s Ally Bank.

Terms of the deal, expected to close during the second quarter, weren't disclosed.

U.S. Bancorp's U.S. Bank already operates a document custodian unit--which stores and safeguards various loan files, including mortgages and leases--through its global corporate trust services division.

The acquisition will add as many as 40 employees to U.S. Bank, along with a new location in Waterloo, Iowa. It will also increase the bank's documents under custody by 15%.

The move follows Ally Financial's initial public offering last week, in which the U.S. Treasury Department scaled back its stake in the company to 17% from 37%. The government bailed out the former General Motors Co. financing business for $17.2 billion during the financial crisis.

Minneapolis-based U.S. Bancorp, meanwhile, has had to contend with recent declines in mortgage-banking revenue and net interest margin.

Write to Michael Calia at [e-mail]

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