Wilbur Ross, the billionaire investor, is to
take a 25% stake in New Jersey-based Sun Bancorp strengthening the
bank’s primary subsidiary, Sun National Bank.
Ross, who invested in Richard Branson’s Virgin
Money to boost its chances of becoming a full-service retail bank
in April, is reported to have said that he expects thousands of US
banks to fail as a result of the economic downturn.
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His private equity company, WL Ross & Co,
and the bank’s largest shareholder, the Brown Family have agreed to
invest $100m to strengthen the bank’s capital base.
“Our goal is to be in a position to take
advantage of a rebounding economy and in turn, contribute to its
recovery,” said Thomas Geisel, the bank’s chief
executive.
“The high degree of interest expressed by
Wilbur Ross and the Brown Family underscores the power of our
business model, with its substantial strengths in commercial and
consumer banking.”
The deal is still subject to regulatory
approval.
