Apollo Management's establishment of a new bank is novel, but it uses old techniques.
Last month, the private equity house announced that it was teaming up with a group of investors to create a bank run by Countrywide Financial. The move was triggered by a clause in the Frank-Dodd Bill that allows banks to operate across US states without a national charter.
But lawyers say that the important aspect is that Apollo (and the other investors) will avoid becoming bank holding companies...