How Apollo created a bank

Author: Nicholas Pettifer | Published: 2 Aug 2010

Apollo Management’s 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 by taking...