One interesting stat coming from today’s November jobs report is on financial services jobs: monthly job losses in this category averaged 29,000 in 2009, but have since decelerated to 8,000 per month in 2010. See chart below.
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
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
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
It was mealtime during an airline flight. “Would you like dinner?” the flight attendant asked John, seated in front. “What are my choices?’ John asked. “Yes or no,” she replied. Banker vs. Broker Sometimes brokers feel that they are having fewer and fewer choices. One wrote to me last week and said, “Why would Wells
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
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