Wells Fargo Links to DTCC’s Loan/SERV Reconciliation Service

Wells Fargo Bank has linked to the Depository Trust & Clearing Corporation’s (DTCC) Loan/SERV Reconciliation Service to help automate and streamline the processing of syndicated loans by enabling the bank to view and reconcile loan positions with thousands of lenders on a daily basis.

Syndicated loans involve multiple lenders for each borrower, with agent banks acting as the liaison, transmitting information between parties. Prior to the launch of Loan/SERV, the reconciliation process was essentially manual and resulted in thousands of faxes going out into the market each month. Loan/SERV automates the process and enables agent banks and lenders to view and reconcile loans on a position basis, or at a more detailed level ranging from the commitment and transaction level down to the individual contracts, drawings and fees with all relevant transactions details.

“As our loan business continues to grow globally, the need for an automated reconciliation service to provide our customers with the most accurate and up-to-date information available on their loan positions becomes paramount,” said Peter Amendola, executive vice president (EVP), Wells Fargo wholesale banking. “Loan/SERV provides us with the solution that will automate the reconciliation process, boost efficiencies and help reduce risk in the market.”

DTCC will begin piloting a cash settlement service, called Cash on Transfer, in the second quarter of 2011. Cash on Transfer will provide the global syndicated loan market with a delivery-versus-payment platform for secondary loan trading. It will help ensure that cash settles simultaneously with the change in legal ownership of the asset recorded by the agent bank. It will handle cash settlement in 50 different currencies.


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