JPMorgan to buy almost $2 bln of mortgages in the PacWest deal - Bloomberg News (updated)

PacWest Bancorp

26/07/2023 19:24

(Adds details on mortgage in paragraph 2)
       July 26 (Reuters) - JPMorgan Chase & Co  JPM.N  will buy
almost $2 billion worth of mortgages to facilitate Banc of
California's  BANC.N  purchase of PacWest Bancorp  PACW.O ,
Bloomberg News reported on Wednesday.
    The investment bank has entered into an agreement to buy
$1.8 billion of single-family residential loans at a discount,
report added citing people briefed on the matter.  
    Banc of California and PacWest on Tuesday announced an
all-stock merger with a $400 million equity raise from Warburg
Pincus and Centerbridge Partners to create a bank with $36
billion in assets.
    The merger marks a rare transaction in the market after
several months of government-negotiated sales of failed banks.
Bank mergers have also been held up for months or scrapped
awaiting regulatory approval.
    PacWest was among the lenders that were rocked by the
collapse of three regional banks earlier this year, prompting
the worst industry turmoil since the 2008 financial crisis.
    

 (Reporting by Jaiveer Singh Shekhawat in Bengaluru; Editing by
Arun Koyyur)
 ((JaiveerSingh.Shekhawat@thomsonreuters.com;))