U.S. Bank to buy Wachovia trustee services

U.S. Bank agreed to purchase the corporate trust and institutional custody businesses of Wachovia Corp., the company announced. U.S. Bank Corporate Trust Services will acquire approximately 14,100 new client issuances and $410 billion in assets under administration. The transaction has a $720 million initial cash purchase price with additional payment potentially reaching $80 million within one year, based on business retention levels. Following the deal's close, U.S. Bank will be the largest tax-exempt debt trustee, the second largest in the area of asset-backed and mortgage-backed securities, and the third largest in new corporate bond issuances, as well as the ninth-largest institutional custody provider.