Investors Cheer Fremont's New Focus

The company will sell its commercial real estate lending unit in a $1.9 billion deal to conmcentrate on its retail banking operation

Fremont General (FMT) shares jumped on May 22 after the company agreed to sell its commercial real estate lending business and outstanding loan portfolio to iStar Financial (SFI) for $1.9 billion. The company also said it will sell 20% of what's left of Fremont, mostly a bank called Fremont Investment & Loan, to Gerald J. Ford, a Texas billionaire known for turning around banks.

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