The Cerberus Group may hold on to a controlling stake in Aozora Bank for keeps in an effort to cement its position in Japan, according to James Danforth Quayle, an adviser for the U.S. investment fund and a member of Aozora Bank's board of directors.

"We may never sell Aozora," the former U.S. vice president said in an interview earlier this week.

He was addressing fears within the Financial Services Agency that the group is only out to turn a quick profit in Japan by dumping its stake in the formerly nationalized bank as soon as the share value climbs to a certain point.

"There's always the possibility of other options beyond the sale to enhance the value for the shareholders and to make the bank profitable," Quayle said.

He pointed to U.S.-based Ableco Finance LLC, which Cerberus owns, saying that Cerberus has no intention of letting it go. "It could be the same for Aozora," he said.

The group applied last week for FSA approval of its proposed purchase of Aozora. Regulators have said they will examine Cerberus' business plans along with its ability to contribute to Japan's banking industry.

Observers are monitoring FSA deliberations closely to gauge the readiness of banking regulators to welcome more foreign players.

Cerberus is taking few chances, with Quayle and other officials emphasizing its willingness to work with regulators, the current management of Aozora and shareholders to raise Aozora's profitability.

"Once we acquire Aozora, we will be working as diligently and as positively as we can with all sectors of the Japanese community, and we'll be spending a lot of time making sure they're comfortable with what we're doing, and ask for input," Quayle said. "You will see us working with open arms in a way that's very sensitive to the Japanese culture and how things are done here, which is a bit different than how it's done in the U.S."

Cerberus boasts expertise in terms of financially restructuring companies, an urgent matter in a nation weighed down by debt.

Its contributions should erase any doubts raised in the past, Quayle said.

Almost four years ago, Cerberus was one of the initial bidders hoping to buy Aozora's predecessor, the nationalized Nippon Credit Bank. But the purchase went to a consortium led by Internet investor Softbank Corp., following pressure to find a domestic buyer.

Quayle admitted that Cerberus still sees a need for change in some aspects of Aozora's management, with the group planning to expand Aozora's loan assets and businesses in the long term.

"I have seen progress, I have seen the management team work diligently to clean up the books," Quayle said. "Can we do better? Of course we can do better."

Yet Quayle and other Cerberus officials remain wary about mapping out clear business plans aimed at carving out further profits for Aozora.

The bank doesn't want to be equated with Shinsei Bank, said one official.

Shinsei Bank, formerly the nationalized Long-Term Credit Bank of Japan, was purchased by a consortium led by U.S. investment group Ripplewood Holdings LLC three years ago. It has since earned government and media criticism for cutting off corporate borrowers who couldn't repay their loans.

Cerberus plans to transform Aozora slowly, discussing each change with fellow stakeholders Tokio Marine & Fire Insurance Co., Orix Corp. and regional banks.

Change will come only after Cerberus succeeds in gaining understanding of its business plans, which won't come overnight, according to Quayle.

"Aozora will be a survivor," Quayle said. "And when the economy turns around, it will be in a very strong position a few years down the road.

"When it's good times, when it's bad times, we're still going to be here."