Federal Regulators have issued a preliminary approval of a shelf charter for SJB National Bank, which is led by Miami Dolphins owner and CEO of Related Cos., Stephen M. Ross. The move paves the way for Ross and his partners to acquire a failed bank from the Federal Deposit Insurance Corporation should it so desire.
The move comes just weeks after the FDIC adjusted investment and capital requirements for the purchase of failed banks in an effort to expand its pool of investors, with hopes of hoping bringing in private investors such as Ross.
According to documents, if SJB forms, Adolfo Henriques, a longtime Miami banking executive, would become chief executive officer. The name of the bank is apparently for the first initial of Ross and his two colleagues that are starting the bank alongside him; Related Cos. President Jeff T. Blau and Executive VP Bruce A Beal, Jr.
Several reports cited Ross’ desire to acquire Chicago-based Corus Bank, which failed on Friday, as the main motivation for starting SJN National. Corus Bank, along with $7 billion in deposits, has about $7 billion in assets, with a nice portion being held in commercial loans.
Corus bank reportedly has a $1.1 billion portfolio of loans in the South Florida area, where Ross already holds a large portion of real estate holdings. Corus holds loans on a few high profile properties in Southern Florida, such as the Trump International Hotel and Tower in Ft. Lauderdale, as well as the Tao condo complex in Sunrise.
However, the FDIC announced that it was splitting the Corus’ banking holdings from its real-estate holdings. The move would allow Ross and his Related Cos to purchase the Corus loan portfolio without forming SJB National.
The FDIC has already come to terms with MB Financial Bank to takeover all $7 billion of Corus’ deposits, at a 0.02 percent premium and purchase $3 billion of its assets.
