Former bankers look to buy failing banks: report
Former CEO of JP Morgan Chase and Co. William Harrison speaks to reporters at the Reuters Finance Summit in New York November 15, 2005.
Credit: Reuters/Shannon Stapleton
(Reuters) - Some former bankers are planning to bid for failing banks in the Federal Insurance Deposit Corp auction process, and getting financial backing from Wall Street firms like Goldman Sachs Group Inc and Deutsche Bank AG, the Wall Street Journal reported citing sources.
JPMorgan Chase & Co's former Chief Executive William Harrison, former Wachovia Corp CEO Robert Steele and Herb Boydstun, former CEO of Hibernia Corp were among the banking veterans considering such plans, the paper said citing people familiar with the situation.
Last month, former executives at Citizens Financial Group Inc, a unit of Royal Bank of Scotland Group PLC, raised $1.15 billion in a private placement and formed NBH Holdings Corp in an effort to buy battered banks, the Journal said.
Other bankers who are looking for investors to enter the auction include Charles Rinehart, former chairman and CEO of H F Ahmanson & Co and Daniel Healy, former finance chief of North Fork Bancorp, the Journal said citing sources.
(Reporting by Supantha Mukherjee in Bangalore; Editing by Valerie Lee)
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