U S Bancorp

Some consumer groups are criticizing U.S. Bancorp's recent acquisitions in Southern California, accusing the Minneapolis-based bank of focusing on suburban neighborhoods and avoiding low-income and minority areas. The California Reinvestment Committee, a network of more than 200 community organizations and public agencies, is calling for a public hearing by the U.S. Comptroller of the Currency to determine if U.S.

U.S. Bancorp, the 14th-largest U.S. bank holding company, said it will increase its stake in New Century Financial Corp. to about 18.8%, after buying 500,000 common shares from one of the mortgage lender's major investors for $4.95 million. Minneapolis-based U.S. Bancorp said it will pay Foundation Cos., a closely held venture capital fund, $9.90 each for the shares, a 10% discount on New Century's closing price of $11 on Dec. 22, when it agreed to make the purchase.

Acquisitive U.S. Bancorp continues to find buying opportunities in Orange County. The Minneapolis-based bank, which is about to close its purchase of Newport Beach-based Western Bancorp., said it is also boosting its investment in New Century Financial Corp., the Irvine mortgage lender. U.S. Bancorp, which owns a 23% stake in New Century, said it will invest another $20 million in the Orange County company, which specializes in loans to borrowers with credit problems.

A jury has ordered U.S. Bancorp to pay $17.6 million in a civil lawsuit brought by the trustee overseeing the bankruptcy of a company that defrauded investors out of $45 million. The Orange County Superior Court jury concluded last week that the bank should have known about fraudulent accounts that it opened for operators of Newport Beach-based DFJ Italia Ltd. Seven people have pleaded guilty to federal charges stemming from the financial scam, which ran from 1996 to 2000.

Wells Fargo & Co. fattened its profit margins and pocketed more customer service fees to boost its fourth-quarter earnings 13%, while U.S. Bancorp lowered its problem loans and expenses to eke out a modest improvement. The results released Tuesday provided investors with their first look at how the nation's biggest banks fared during the final three months of 2006 -- a period in which the U.S.

U.S. Bancorp on Wednesday became the latest big bank to exit the brokerage business, as the Minneapolis company said it would spin off its Piper Jaffray unit to shareholders. The eighth-largest U.S. bank said Piper no longer fits with the parent company's long-term growth plan. Like other brokerages, Piper has been hurt as the three-year bear market on Wall Street has sapped demand for stocks and for merger advice.

Banking brothers John and Jerry Grundhofer--who built their careers in California before leaving to lead their own financial institutions in the Mid-West--said Wednesday they would combine their banks in a $19-billion deal. The sale of John Grundhofer's Minneapolis-based U.S. Bancorp to his younger brother's Milwaukee-based Firstar Corp. will create the nation's eighth-largest bank, with about $160 billion in assets in 24 states.

U.S. Bancorp agreed Monday to buy California Bancshares Inc. for about $309 million in stock, in a move that would boost its presence in Northern California. U.S. Bancorp would almost double its market share in California with the proposed purchase of California Bancshares, which more than doubled its earnings in the last two years. Just last month, Portland-based U.S. Bancorp bought West One Bancorp of Boise, Idaho, for $1.

U.S. Bancorp of Minneapolis said Thursday it has agreed to buy Los Angeles-based Libra Investments Inc., a privately held investment bank, in a move that would significantly boost its presence in California and increase its investment banking and junk bond business. The deal comes just months after rumors that U.S. Bancorp was considering a purchase of Wells Fargo & Co., which later agreed to be bought by U.S. Bancorp's cross-town rival, Norwest Corp. Earlier this year, U.S.

U.S. Bancorp, the 15th-largest U.S. bank, on Monday agreed to buy Piper Jaffray Cos. for about $730 million in cash in order to lock in Midwestern customers with a broader array of financial services. The transaction values Minneapolis-based Piper at $37.25 a share, or about four times book value--assets minus liabilities--a bigger premium than the already lofty prices that other banks paid this year to buy securities firms. Piper shares rose $6.63 to close at $36.