Royal Bank to Buy Prism

Prism Financial Corp., Chicago, has agreed to be acquired by Royal Bank of Canada, Toronto, in a deal valued at US$115 million. Prism is the largest mortgage broker in the United States (although it can and sometimes does operate as a mortgage banker), with total originations of $8 billion in 1999, up 53% from the previous year. Among Royal Bank's U.S. holdings are Security First Network Bank, Atlanta, and Bull & Bear Securities, a discount brokerage operation in New York. John Cleghorn, chairman and chief executive of Royal Bank, said the deal "fits nicely with our strategy of leveraging our Canadian competencies on a niche basis in the United States to create strong North American lines of business." Royal Bank is Canada's largest mortgage lender, according to MortgageWire affiliate Mortgagestats.com. Prism's co-founder, chairman, and chief executive officer Bruce C. Abrams committed suicide Dec. 12, 1999. A subsequent review of the company found no evidence of fraud or other improprieties.