Apollo To Form Bank Under New Regulations

(Reuters) – Private equity firm Apollo Global Management plans to create a new bank under a provision in the U.S. financial reforms passed last week, the Financial Times reported on Sunday, citing people familiar with the matter.

According to the report, Apollo has brought on a team from Countrywide Financial to run the bank, which has yet to receive approval from regulators.

Apollo plans to ask its investors to inject money into the new bank as well, in order to avoid being considered a bank holding company, the Financial Times said.

The bank, which will be called Ares, will have a separate board and operate independently, the report said.

Apollo was not immediately available for comment. (Reporting by Michael Erman and Megan Davies; Editing by Diane Craft)