Manhattan Bancorp Invests in Capital Markets Business

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Manhattan Bancorp said Tuesday it has agreed to invest in a new capital markets business, focusing on the now battered mortgage-backed securities market, with Westside investment firm Bodi Advisors Inc.

BOM Capital will be a capital markets and advisory firm focused on trading residential mortgage-backed securities and mortgage loans for the accounts of its customers, said the holding company of Bank of Manhattan in El Segundo. The business also will have the ability to expand into the origination, brokerage and sale of residential mortgage loans.

The investment “can provide solid earnings and returns for Manhattan Bancorp,” Chief Executive Jeffrey M. Watson said in a statement.

The new limited liability company will be funded by Bodi and MB Financial Services Inc., a new subsidiary of Manhattan. Manhattan Bancorp initially will own a 70 percent stake in BOM Capital, with Bodi retaining a 30 percent stake. Financial details were not disclosed and the deal will require regulatory approval.

Bodi Advisors was founded by Hal Hermelee, Greg Jacobson, and Tad Dahlke, who will be senior managing director of the new company.

“The combination of Manhattan Bancorp’s management team, its strong balance sheet and the reduction in the number of top tier competitors in the mortgage space presents a unique opportunity for the bank and Bodi to join forces by forming BOM Capital,” Hermelee said.

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