Billionaire who bet big on Bank of Ireland confirmed as Trump's trade chief
Wilbur Ross bought into the bank for a knock-down price during the recession.
BILLIONAIRE INVESTOR WILBUR Ross, who made hundreds of millions buying and selling Bank of Ireland shares, has been confirmed as the US commerce secretary.
The job, one of the most important roles in the US government, is in charge of promoting US industry and business and will be key in negotiating US trade deals.
The US Senate voted 72-27 to approve Ross’ appointment after the businessman was nominated for the position by US President Donald Trump.
US publications report that Ross drew support from both Republicans and Democrats. According to Reuters, Ross drew votes from 19 Democrats and one independent.
This was partly because of an endorsement from the United Steelworkers union for his efforts in restructuring bankrupt steel companies in the early 2000s, something which it is estimated saved thousands of jobs.
Ross is expected to go about implementing Trump’s campaign pledge to slash US trade deficits and bring manufacturing jobs back to America.
Trade deals
He has already been chosen to lead renegotiations of the North American Free Trade Agreement between the US, Mexico and Canada.
His appointment was criticised by some Democrats for being another wealthy business figure in Trump’s cabinet.
Wilbur Ross
Worth an estimated $2.9 billion, Ross is the founder of private equity firm WL Ross & Co and is well-known for a series of high-profile corporate turnarounds, buying into distressed companies and selling out when they are performing better.
As part of his ethics agreement, Ross will divest from the firm.
Bank of Ireland
Ross is best known in Ireland for his involvement in Bank of Ireland. He led a group of five investors that acquired a 35% stake in the bank in 2011 for the knock-down price of €1.1 billion.
This helped to keep the bank from being fully nationalised. Bank of Ireland was also kept afloat by the state, which sank €4.8 billion into the organisation between 2009 and 2011. Bank of Ireland later repaid €6 billion to the state.
Ross was estimated to have originally invested €290 million for a 9.9% stake. In March 2014 he made €345 million by offloading 1.1 billion of the bank’s shares at 33c each and then pocketed an additional €477 million from the sale of the remainder of his shares in June.
This likely left the billionaire with a profit of more than €500 million.
Ross has continued to take an interest in Ireland since selling out of Bank of Ireland and is an investor in the Cardinal Capital Group, a fund which provides loans to property companies.
