British bank HSBC Holdings (NYSE:HSBC) has agreed to sell a portfolio of U.S. mortgages and unsecured loans held by its subsidiary HSBC Finance, the company announced today.
The buyer of the loans is SpringCastle Acquisition, a Delaware-based company owned by Springleaf Finance and Newcastle Investment (NYSE:NCT). Springleaf is also buying the HSBC Finance loan servicing facility and other assets in London, Ky. The total payment from SpringCastle and Springleaf is $3.2 billion in cash.
Most of the HSBC employees at the Kentucky facility will become employees of Springleaf when the transaction is completed in the fourth quarter of 2013, the company said.
"These agreements accelerate the run-off of the legacy consumer mortgage and lending business and are a continuation of HSBC's strategy to reposition its U.S. operations," said Patrick Burke, CEO of HSBC Finance.
Fool contributor Dan Radovsky has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
More from The Motley Fool
From First to Worst: Ranking 9 of America's Biggest Banks by Customer Loyalty
These banks score highly on customer loyalty, the hallmark of any well-run financial institution.
The Biggest Problem With Barclays PLC Stock
Barclays PLC has many problems, but to me, this one is the most important.
A Snapshot of the 6 Cheapest Megacap Stocks
Out of five dozen publicly traded companies with valuations in excess of $100 billion, only these six bear single-digit forward P/Es -- but are these companies really as cheap as they appear?