Shares of U.S. Bancorp Jump on Acquisition (USB, BAC)

Shares of U.S. Bancorp are higher by more than 3% Monday, after the bank announced that its subsidiary, U.S. Bank, will acquire the U.S. and European securitization businesses of Bank of America (NYSE: BAC).

U.S. Bancorp stock is higher by $0.74 this afternoon, or 3.01%, to $25.36. Bank of America is higher by $0.10, or 0.83%, to $12.22.

The transaction could be worth $35 million, and is expected to close in December. The acquisition will solidify U.S. Bancorp's position in the U.S. collateralized debt obligation (CDO) and commercial and residential mortgage-backed securities (MBS) markets. Further, the bank would gain entry to Europe's market.

U.S. Bancorp has rallied since trading in the low $20s late this summer. Shares still sit well below the $37.99 high hit in 2008.

U.S. Bancorp and its subsidiaries provide a range of products and services to individuals, businesses, institutional organizations, governmental entities and other financial institutions.