Bank of America on Monday announced the sale of its high-tech financing arm, the establishment of an insurance unit and the formation of a small-business lending division.
The big San Francisco-based bank spun off Decimus Corp. to General Electric Credit Corp., based in Stamford, Conn. Decimus, with assets of $170 million, finances high-technology equipment, primarily computers and related goods.
The sale price for the transaction was not disclosed.
Bank of America also said it has set up an insurance subsidiary to provide liability coverage for bank officers and directors. Employers Insurance of Wausau, which previously carried the policies, canceled its coverage last month in the wake of a $95-million bank claim.
The bank is seeking recovery from Wausau for "gross negligence" on the part of five insured bank officers in an alleged mortgage-securities fraud. The bank fired the employees and is suing them and Wausau in state court.