Vernon W. Hill II is back in business. The ousted founder and ex-CEO of Commerce Bancorp Inc. is setting up a new private-investment firm in Chevy Chase, Md., to invest in mid-cap banks. His partner is Gary Townsend, former bank analyst at Friedman Billings Ramsey Group Inc. in Virginia, and a vocal Commerce fan whose deep voice could be counted on to ask some of the more understanding questions during Hill's often-tense quarterly earnings calls. They're calling the firm Hill-Townsend Capital (press release is here).
Will they be activist investors? "Vernon is long-term. That remains part of his thinking," Townsend told us. Yes, but will they push reluctant bank managers to shape up or sell out? "It's too early to say." Hill, who has a palatial home in Moorestown, couldn't be reached at his office. Bloomberg News notes that his stock holdings in Commerce (which has agreed to be purchased by Toronto-Dominion Bank) were worth roughly $177 million as of yesterday.
