Manhattan Bancorp, the holding firm of Bank of Manhattan, agreed to invest in a new capital markets business with Bodi Advisors.
Bodi, which was founded by Greg Jacobson, Hal Hermelee and Tad Dahlke, and a new subsidiary of Bancorp, MB Financial Services, will capitalize a new limited liability company formed to conduct business under the name BOM Capital.
BOM Capital will be a capital markets and advisory firm, focused on the trading, for the accounts of customers, of residential mortgage-backed securities and mortgage loans.
The business could also expand into the origination, brokerage and sale of residential mortgage loans. The deal and business are subject to regulatory approval, licensing or notice requirements of different governmental agencies, including the Federal Reserve Board and the Financial Institutions Regulatory Authority.
"We are very excited for the opportunity to work with the Bodi team of industry leaders with a proven track record of success," stated Watson, Manhattan Bancorps president and CEO This investment represents an opportunity to participate in a fee revenue based business that can provide solid earnings and returns for Manhattan Bancorp.
The firm will actively trade RMBS and whole loans on behalf of its customers, said Dahlke, senior managing director of the new company. "We are also looking forward to the possibility of adding a first class mortgage origination team at an appropriate time in the future. The combination of Manhattan Bancorps management team, its strong balance sheet and the reduction in the number of top tier competitors in the mortgage space presents a unique opportunity for the Bank and Bodi to join forces by forming BOM Capital."
We are very excited to build an integrated platform to take advantage of the opportunities that todays market presents. Given the team of top industry professionals joining us, we have a team that will provide a solid framework and drive value for years to come," Hermelee said.
Manhattan Bancorp will initially own a 70% stake in BOM Capital with Bodi retaining a 30% stake.