Chevy Chase bank consortium gets $150 million investment
By Thomas Heath,
BancAlliance, a Chevy Chase-based bank network run by a former top U.S. Treasury official and founded by a Democratic congressional hopeful, has snagged a $150 million investment from a noted Wall Street player.
BlueMountain Capital Management, a private investment firm based in New York, Tuesday announced that it has invested in BancAlliance, which tries to help regional banks better compete for big loans by combining various assets for economic scale.
BancAlliance, which counts more than 50 banks from 26 states as members, is also backed by giant asset manager BlackRock.
BancAlliance is run by Lee Sachs, who was assistant Secretary of the Treasury for Financial Markets from 1999 to 2001, and was founded by John K. Delaney, a Washington entrepreneur who started CapitalSource, and who is the Democratic candidate for Maryland’s 6th Congressional District.
BlueMountain was one of several firms that scored big by taking the other side of J.P. Morgan Chase & Co.’s trades when the big bank lost $2.3 billion earlier this year, according to published reports.
BancAlliance’s member assets range from $100 million to $10 billion, making the firm’s lending capacity equal to one of the top 50 banks in the United States.