CalFed Selling TSA Capital to Mitchum Jones
Mitchum, Jones & Templeton Inc., a Los Angeles-based investment firm that is developing a high-technology trading system, said Thursday it has agreed to acquire an investment management unit of CalFed Inc.
Terms of the sale of CalFed's TSA Capital Management were not disclosed. TSA executives are also buying a piece of the company, which emphasizes quantitative techniques and has $2 billion under management.
TSA is part of Trust Services of America, other assets of which CalFed recently agreed to sell to Northern Trust Corp. of Chicago for $65 million.
Regulators Crack Down
The TSA announcement came a day after CalFed disclosed that federal thrift regulators have asked its principal subsidiary, California Federal Bank, to raise $375 million in equity by June 30.
Mitchum Jones is developing a computerized investment analysis and trading system that it said will fit well with TSA's approaches.
Two principals of Mitchum Jones, William A. Lupien and Murray L. Finebaum, are the former chairman and president of Instinet, creator of an international computer-based securities system that was acquired by Reuters in 1987.
"The combination of our experience in the trading process and its emerging technology with TSA's investment management talents will permit us to offer new opportunities to our clients," Mr. Lupien said in a statement.