Flowers Targets New Jersey Bank in Rare Private-Equity Takeover

Financier J. Christopher Flowers won U.S. approval to buy a two-branch bank in New Jersey, in a rare bank takeover by a private-equity fund manager that may revive a debate about such investors’ role in the banking system.

The U.S. Office of Thrift Supervision cleared the purchase of the Saddle River Valley Bank by seven funds set up for that purpose by Flowers, according to an Oct. 14 approval letter on the OTS Web site. The bank has $82.8 million of assets. Terms of the deal weren’t disclosed.