The deals are highlighting the increasingly divergent condition of U.S. and European banks. While European banks struggle with shaky loans and increased liquidity and capital needs, some U.S. banks are flush with deposits from retail and corporate clients. They are looking for investments that offer better returns than are otherwise available in a low-interest-rate environment.
"It's the latest in a series of acquisitions they've made of portfolios from European banks that are getting out of their U.S. loans and businesses," said Joe Morford, a managing director and financial services analyst at RBC Capital Markets. "Here's an opportunity to buy a portfolio of attractive yielding assets and build additional relationships with a customer they can cross-sell."