Wednesday, July 7, 2010

Red Thumbs Up: Wilbur Ross to Buy His Third Bank

Wilbur Ross will invest $50 million in Sun Bancorp for a 24.9 percent stake in the New Jersey bank. Ross owns part of BankUnited, which has a $4.9 billion subsidy from the FDIC, and First Michigan Bank, which has an $800 million loss sharing deal.

Through May 2010, the FDIC has entered into 161 loss sharing agreements, with $173.5 billion in assets under loss sharing.
Wilbur Ross is involved in two agreements with $5.7 billion in federal support. Did Sheila Bair and her staff know of Wilbur's background as owner of the Sago Mine, where 12 miners died? Dastardly deeds rarely come back to haunt the wealthy and politically connected, even those with blood on their hands.

Update 2-12-2011:  Wilbur Ross landed another $331 million loss sharing deal with the FDIC, which took over Peoples State Bank, based in Hamtramck, Mich., with $390.5 million in assets.  Ross' First Michigan Bank, based in Troy, Mich., is acquiring the assets and deposits of Peoples State Bank  In addition, the FDIC and First Michigan Bank agreed to share losses on $331 million of Peoples State Bank's loans and other assets.Ross' loss sharing deals with the FDIC are now over $6 billion. It's bank four for Wilbur, how many more?