Blank-check firm says in record U.S. bank purchase

By Jonathan Stempel

NEW YORK (Reuters) - A so-called "blank-check" company said it will acquire two Nevada community lenders in the largest such recapitalization of a bank in U.S. history.

The move suggests a new form of financing that may be available for a troubled banking industry seeking new sources of capital to bolster balance sheets.

Most of the acquired assets came from Colonial BancGroup Inc (CNB.N), which has struggled as loan losses depleted capital. An analyst said the move could position the Montgomery, Alabama-based lender, which has about $26 billion of assets, as a candidate for a government-assisted sale.

Global Consumer Acquisition Corp GHC.A, the blank-check company, said the purchase includes 21 Colonial branches in Nevada and about half the bank's deposits and loans there. It also includes 1st Commerce Bank, a unit of Capital Bancorp Ltd (CBC.N), which has offices in Arizona and Michigan.

The company plans to become a commercial bank holding company named Western Liberty Bancorp. Global Consumer said it is buying only loans it deems "higher quality credits and has been able to leave the seller with all other loans." It said the timing of the closing depends on regulatory approvals.

Western Liberty would have $547 million of deposits, $474 million of loan assets and 22 branches, and operate under the 1st Commerce name. It said it plans to focus on "conservative" business and consumer lending, trade finance and deposits.

Colonial said its part of the sale includes $300 million of non-time deposits being sold at a 9.33 percent premium.

Blank-check companies, formally known as special purpose acquisition companies, were popular before the credit crisis hit two years ago, yet many have had trouble finding things to buy. A SPAC typically has two years after an IPO to make an acquisition, or it has to return money to investors. Global Consumer went public in November 2007, raising $300 million.