Private Equity

FDIC Votes 4-1 To Relax Private Equity Rules For Investing In Banks

From MarketWatch: The board of the FDIC voted 4-1 Wednesday to require private-equity firms with no history of bank management to maintain a 10% capital-asset ratio and to submit to strong restrictions on lending to their affiliates. The rules also require private-equity firms that bid on banks to commit to owning and operating them for

Private Equity To Save Banks? Without Fed Regulation?

It’s been well known that private equity firms are a viable white knight for banks who are temporarily troubled but may be good bets long term. So if they take majority stakes in banks, are they subject to the same rules as banks, or is this an end-run around the rules? According to a Bloomberg

Private Equity To The Banking Rescue?

The Economist recently pointed out how private equity is gearing up for some serious financial sector investing, saying that 60 private equity funds that focus on financial services were set up in 2008 and 114 are in the works. One key reason for the trend is that non-banking firms previously could not own significant stakes

Private Equity Limits on Bank Investing To Be Lifted?

Yesterday during testimony to the House Financial Services Committee on Financial Regulation, Treasury Secretary Henry Paulson said there is a forthcoming plan to allow private equity firms and hedge funds to invest in banks. Right now, private investors cannot accumulate more than a 9.9% stake in banks without bumping into regulations, but this could rise

Private Equity-Backed Prospect Mortgage Buys IndyMac Retail Network

Following IndyMac’s announcement that they’re exiting retail and wholesale lending, Illinois-based Prospect Mortgage announced the purchase of IndyMac’s retail lending network for an undisclosed amount. Prospect owns Metrocities Mortgage, a nationwide mortgage bank who claims 5.6 billion in fundings for 2006 (irrelevant number in current market context); Opteum Mortgage, a mortgage broker headquartered in New