Business & Finance
Business and Finance
Business and Finance
Mon, March 28, 2011 Wells Fargo Links To DTCCa?s Loan/SERV Reconciliation Service
NEW YORK & LONDON--([ BUSINESS WIRE ])--The Depository Trust & Clearing Corporation (DTCC) today announced that Wells Fargo Bank (NYSE: WFC) has linked to its Loan/SERV Reconciliation Service to help automate and streamline the processing of syndicated loans by enabling the bank to view and reconcile loan positions with thousands of lenders on a daily basis.
"Wells Fargo is joining the leading global banks that have linked to Loan/SERV Reconciliation to boost customer satisfaction, improve market-wide data accuracy and increase operational efficiency"
aAs our loan business continues to grow globally, the need for an automated reconciliation service to provide our customers with the most accurate and up-to-date information available on their loan positions becomes paramount,a said Peter Amendola, executive vice president, Wells Fargo Wholesale Banking. aLoan/SERV provides us with the solution that will automate the reconciliation process, boost efficiencies and help reduce risk in the market.a
aWells Fargo is joining the leading global banks that have linked to Loan/SERV Reconciliation to boost customer satisfaction, improve market-wide data accuracy and increase operational efficiency,a said Mathew Keshav Lewis, DTCC vice president, Global Loans Product Management. aLoan/SERV is the only service that provides a global reconciliation solution for the syndicated loan market and now serves lenders in more than 45 countries across North America, Latin America, Europe, Asia and Africa.a
Agents banks already linked to Loan/SERVa™s reconciliation services are The Bank of New York Mellon, Barclays Capital, Citi, Credit Suisse, Deutsche Bank, Goldman Sachs, J.P. Morgan and The Royal Bank of Scotland.
Syndicated loans involve multiple lenders for each borrower, with agent banks acting as the liaison, transmitting information between parties. Prior to the launch of Loan/SERV, the reconciliation process was essentially manual and resulted in thousands of faxes going out into the market each month. Loan/SERV automates the process and enables agent banks and lenders to view and reconcile loans on a position basis, or at a more detailed level ranging from the commitment and transaction level down to the individual contracts, drawings and fees with all relevant transactions details.
Along with the agent banks, more than 2,800 investment funds and lending entities administered by more than 250 leading funds managers and bank lenders have linked to the reconciliation service since Loan/SERV was launched in 2008. These firms now represent approximately 50% of the global syndicated loan market.
DTCC will begin piloting a cash settlement service in the second quarter of 2011 called Cash on Transfer with a number of global loan agents, trading desk, paying agents, custodians and administrators. Cash on Transfer will provide the global syndicated loan market with its first delivery-versus-payment platform for secondary loan trading. It will help ensure that cash settles simultaneously with the change in legal ownership of the asset recorded by the agent bank. It will handle cash settlement in 50 different currencies.
Loan/SERV is a service offering of DTCC Loan/SERV LLC, a subsidiary of DTCC.
About DTCC
DTCC, through its subsidiaries, provides clearance, settlement and information services for equities, corporate and municipal bonds, government and mortgage-backed securities, money market instruments and over-the-counter derivatives. In addition, DTCC is a leading processor of mutual funds and insurance transactions, linking funds and carriers with their distribution networks. DTCC's depository provides custody and asset servicing for more than 3.6 million securities issues from the United States and 121 other countries and territories, valued at US$36.5 trillion. In 2010, DTCC settled nearly US$1.66 quadrillion in securities transactions. DTCC has operating facilities and data centers in multiple locations in the United States and overseas. For more information, please visit [ www.dtcc.com ].
