Greenlight, Elliott Back Failed-Bank Effort

Feb 16 2010 | 3:45am ET

A pair of hedge funds is pitching in to help buy a failed bank.

Greenlight Capital and Elliott Management are among the investors who ponied up $1.1 billion to finance SJB National Bank. SJB was set up by real-estate investors Stephen Ross, Jeff Blau and Bruce Beal of the Related Cos., Bloomberg News reports. The firm does not yet have any banking operations, but won federal approval in October to bid on banks seized by the Federal Deposit Insurance Corp.

SJB raised the money in a private placement managed by Deutsche Bank. Related does not have any stake in SJB.

Alternative investment firms have been active in buying failed banks, with the Blackstone Group, Dune Capital Management, J.C. Flowers & Co., Paulson & Co., Soros Fund Management and W.L. Ross & Co. all taking part in deals for seized banks.


In Depth

Steinbrugge: Top 10 Hedge Fund Industry Trends for 2017

Jan 3 2017 | 9:03pm ET

Each year, Agecroft Partners' Don Steinbrugge predicts the top hedge fund industry...

Lifestyle

'Tis the Season: Wall Street Holiday Parties Back In Fashion

Dec 22 2016 | 9:23pm ET

Spending on Wall Street holiday parties has largely returned to pre-2008 levels...

Guest Contributor

DarcMatter: The Top Trends in Alternative Investments for 2017

Jan 13 2017 | 8:22pm ET

The $7 trillion alternative investments industry is poised for continued growth...

 

From the current issue of

The U.S. Commodity Futures Trading Commission (CFTC) ordered The Goldman Sachs Group Inc., and Goldman, Sachs & Co. to pay a $120 million penalty for attempted manipulation and false reporting of ISDAFIX Benchmark Rates, a global benchmark for interest rate products.