Wall Street Journal (04/15/08) P. C1; McKay, Betsy; Paletta, Damian
In an effort to meet the May 26 deadline imposed by regulators in California to either raise new capital or unload its banking subsidiary, Fremont General Corp. is selling $5.6 billion in deposits from its Fremont Investment & Loan unit to Capital Source Inc. The Brea, Calif.-based company, which fell on hard times as a result of the subprime mortgage crisis and was forced to sell its subprime division last year, will keep its residential mortgage assets and loan servicing operations. Capital Source, a real estate investment trust based in Chevy Chase, Md., also will acquire Fremont's bank branches and a commercial mortgage pool. The Federal Deposit Insurance Corp. and other federal regulators must approve the transaction.
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