MINNEAPOLIS--(BUSINESS WIRE)--Nov. 30, 2006--U.S. Bank
Institutional Trust & Custody announced today that it has entered into
a definitive agreement to sell its bundled 401(k) defined contribution
plan business to Great-West Life & Annuity whose business unit,
Great-West Retirement Services, will manage the business. U.S. Bank
Institutional Trust & Custody is not selling its trust, custody,
defined benefit, non-qualified plan or health savings account
"U.S. Bank remains firmly committed to the institutional trust,
custody and health savings account businesses," said Diane
Thormodsgard, president of U.S. Bank Institutional Trust & Custody.
"The acquisition of the Wachovia institutional custody business
demonstrates our commitment and willingness to invest in this
business. The sale of the 401(k) business allows us to concentrate our
focus and resources on businesses where we have significant scale
and/or opportunity for growth."
"By industry standards today, a book of two to three million
participants is necessary to support continued investment. U.S. Bank
has approximately 195,000 participants. We believe the sale of this
business segment to a national leader will provide significant
benefits to our clients," said Thormodsgard. "As the 4th largest
defined contribution provider with a commitment to high quality
customer service and strategic product development, Great-West
Retirement Services will offer our clients excellent products and
services in a bundled environment."
The transaction is expected to close in late December 2006
following the receipt of regulatory approvals. Terms of the
transaction are not disclosed.
Great-West Retirement Services is a business unit of Great-West
Life & Annuity which provides retirement products and services to
corporate 401(k) and institutional clients, as well as government,
healthcare and education customers in the public/non-profit markets.
Following the U.S. Bank transaction, Great-West Retirement Services
will provide 401(k), 401(a), 403(b) and 457 retirement plan services
to more than 21,000 plans representing nearly 3.5 million participants
with more than $104 billion in assets.
U.S. Bank Institutional Trust & Custody is a division of U.S. Bank
National Association that focuses on trust, custody, health savings
accounts, investments and retirement services to institutional clients
and has nearly $1 trillion in assets under administration. Its product
offerings include institutional trust and institutional custody
services, health savings accounts and retirement plans (including
401(k), profit sharing or money purchase pension plans).
U.S. Bancorp (NYSE:USB), with assets of $217 billion, is the 6th
largest financial services holding company in the United States. The
company operates 2,467 banking offices and 4,943 ATMs in 24 states,
and provides a comprehensive line of banking, brokerage, insurance,
investment, mortgage, trust and payment services products to
consumers, businesses and institutions. U.S. Bancorp is the parent
company of U.S. Bank. Visit U.S. Bancorp on the web at www.usbank.com.
CONTACT: U.S. Bank
Amy Frantti, 612-303-0733
Steve Dale, 612-303-0784
SOURCE: U.S. Bancorp