Ocwen Okayed to Buy ResCap Unit, CFO Shakeup at JPMorgan: Financial Business Roundup
The United States Bankruptcy Judge Martin Glenn in Manhattan has granted Residential Capital approval to divest its mortgage servicing division to Ocwen Financial Corporation (NYSE:OCN) at a price of $3 billion. Glenn will sign an order as soon as Tuesday approving the sale, once the company agrees with creditors on the final wording. The decision was made possible by ResCap’s settling the principal objections from its largest customers, among which include the mortgage- owners Fannie Mae (FNMA.OB) and Freddie Mac (FMCC.OB). However, if ResCap and the mortgage owners are unable to make an agreement on the size of the payments, they would return to court in January. For its part Ocwen won an auction on October 24th for ResCap’s servicing unit with an offer of $3 billion, and the day after, Berkshire Hathaway (NYSE:BRKA) won an auction for a portfolio of the firm’s loans for $1.5 billion. ResCap is owned by the Detroit-based auto lender Ally Financial, which is majority owned by United States taxpayers.
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In a late afternoon press release, JPMorgan Chase & Co. (NYSE:JPM) announced that its Chief Financial Officer of Consumer & Community Banking Marianne Lake will become chief financial officer for the entire company and a member of its Operating Committee, effective early 2013. Lake will succeed Doug Braunstein, who will become a vice chairman of the company after her transition into her new position in first quarter of next year.
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