Apollo Managements establishment of a new bank is
novel, but it uses old techniques.
Last week, 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