Now Hedge Funds are going into the banking biz

Who would have thunk it? An affiliate of a Greenwich-based hedge fund firm is slated to become the largest shareholder in the new Bank of Greenwich. Last week, state Banking Commissioner John Burke said he would approve the acquisition by Plainfield Greenwich Holdings LLC of more than 10 percent but less than 25 percent of the outstanding shares of the Bank of Greenwch.

Plainfield Greenwich Holdings is the largest shareholder and is part of the hedge fund firm Plainfield Asset Management LLC, said James Calkins, executive vice president of the Bank of Greenwich, which has raised $10 million in its initial stock offering. He declined to disclose the exact size of Plainfield Greenwich Holdings' stake.

Founded by Max Holmes last year, Plainfield Asset Management employs 40 people in downtown Greenwich, according to its Web site. Plainfield officials could not be reached for comment.

Plainfield Asset manages $1.3 billion for individuals and institutions. It owns equity in San Diego-based Mitek System, a maker of document imaging software for financial institutions, and Las Vegas-based Riviera Holdings Corp., owner of Riviera Hotel & Casino in Las Vegas and the Riviera Black Hawk Casino in Colorado.

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