Reuters: Deals: Credit Agricole sells closed unit to U.S. fund: FT

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Credit Agricole sells closed unit to U.S. fund: FT Mar 16th 2012, 08:29 PARIS | Fri Mar 16, 2012 4:29am EDT PARIS (Reuters) - Credit Agricole (CAGR.PA) has sold what remains of its structured credit market-making business to U.S. hedge fund BlueMountain in a deal that will cut the French bank's risk weighted assets by 14 billion euros, the Financial Times reported. The hedge fund will wind down the portfolio of derivatives contracts related to corporate bonds held in the business, which ceased operations three years ago, the paper said, citing Jean-Yves Hocher, the chief executive of its investment banking unit. Terms of the deal were not disclosed, the FT said on Friday. Credit Agricole will pay a fee to BlueMountain to manage the portfolio, which will be held in an investment vehicle called Alpine, with the fund retaining profits. Credit Agricole will also retain counterparty risk in the deal, and provide a liquidity facility to the fund, said the paper, which also cited BlueMountain Chief Executive Andrew Feldstein. Credit Agricole did not immediately return a phone call seeking comment.

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