Wall Street Investment Bank Merrill Lynch Plugs Gap in Its Mortgage Operations with New Purchase
September 15, 2006
Merrill Lynch has decided to buy nonprime lender First Franklin from National City for $1.3 billion. The acquisition fills out the Wall Street firm’s mortgage platform since it already owns a prime and jumbo lender. Buying First Franklin “accelerates our vertical integration into mortgages,” said Dow Kim, president of Merrill's global markets and investment-banking group, in a statement. Having the nonprime lender’s healthy origination volume is just what Merrill Lynch thinks it needs to ensure that its securitization...