NORTH PROVIDENCE – Union Federal Savings Bank, the battered lender owned by The First Marblehead Corp., has sold $234 million in student loans for only about half their value on the orders of federal regulators.
The bank sold the loans to Wells Fargo & Co. for about $122 million, or 52 percent of their outstanding principal balance. Most of the debt dated to late 2007, according to First Marblehead.
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The move comes three months after the U.S. Office of Thrift Supervision ordered Union Federal to reduce the size of its balance sheet.
“The company is pleased to complete this sale, which is a major component of our concentration reduction plan,” Daniel Meyers, First Marblehead’s president and CEO, said in a statement. “Through a thorough sales process led by Credit Suisse and Deutsche Bank Securities, we have completed the sale more than two months ahead of schedule.”
Additional information is available at UnionFSB.com.
