Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: shades who wrote (66068)	7/13/2006 10:35:37 PM
From: shades	Read Replies (1) \| Respond to of 110194

Deutsche Bank To Buy MortgageIT In $429M Deal (What do they see that you don't Russ? - Didn't Lambeth Palace say you got to watch these big companies like blackstone and such - they have smart people. An uneducated redneck I knew in south ga LOVED it when the NY yankee boyz wanted to come buy up local businesses, shopping malls, land etc etc seeking new investments. Somehow the local councilmen would put the majority of taxes and burdens on these folks - they would lose their butt - and the previous local owners would get thier assets back at 50% discounts to what they sold them for and laugh at the yankee boys all the way to the bank - dumb rednecks indeed! hehe I learned try not to invest where you don't have good local political connections - like a brother thats a mayor - globalization is great in theory - sucks in real world practice from what I see - jimmy buffet sang about that eh?) By David Enrich Of DOW JONES NEWSWIRES NEW YORK (Dow Jones)--Deutsche Bank AG (DB) said Wednesday that it is buying MortgageIT Holdings Inc. (MHL) in a $429 million deal that marks the German bank's latest expansion in the U.S. mortgage-lending business. Deutsche Bank is paying $14.75 cash for each MortgageIT share, representing a roughly 19% premium above where the residential-mortgage lender's shares closed Tuesday. The deal is expected to be completed in the fourth quarter. Deutsche Bank, like its peers on and off Wall Street, has been trying to grow in mortgage-lending. The bank's motivation is the burgeoning interest among investors in the U.S. and overseas for asset-backed securities. At a time when rising interest rates are damping demand for residential mortgages, it is becoming harder for securities firms to get their hands on a fresh supply of mortgage products that they can repackage as securities. Banks see bringing mortgage-lending capabilities in-house as a partial solution to the problem of shrinking supply. "As Deutsche Bank continues to grow its (residential mortgage-backed securities) business, we believe the vertical integration of a leading mortgage originator like MortgageIT will provide significant competitive advantages, such as access to a steady source of product for distribution into the mortgage-capital markets," said Phil Weingord, Deutsche Bank's head of global markets for the Americas, in a statement Wednesday. Deutsche Bank isn't the only company looking to grow in the field. Lehman Brothers Holdings Inc. (LEH) and Bear Stearns Cos. (BSC) already are leaders, owning sizable mortgage-lending businesses. Meanwhile, Wall Street firms such as Merrill Lynch & Co. (MER) and Morgan Stanley (MS) also have been mulling acquisitions of thrifts or other mortgage lenders. Deutsche Bank recently has been expanding aggressively. In May, it bought a California subprime mortgage company, Chapel Hill Funding LLC, in a deal whose terms weren't disclosed. But the MortgageIT deal is considerably larger than Chapel Hill. The New York company specializes in so-called option adjustable-rate mortgages, or ARMs, and last year originated about $29.2 billion in loans. MortgageIT has 50 branches and is licensed to do business throughout the U.S., according to Deutsche Bank. MortgageIT recently was up $2.26, or 18%, to $14.66 in premarket trading. -By David Enrich, Dow Jones Newswires; 201-938-2123; david.enrich@dowjones.com (END) Dow Jones Newswires July 12, 2006 09:29 ET (13:29 GMT)