Post Tagged with: "private equity"
The Giant 21st Century Asset Grab
The financial plan is basically an asset grab. They want to load the whole economy down with debt. A consumer will come in and say, I’d like to take out a loan. They’ll say, how much do you earn? Everything over subsistence they’ll want as a loan
Ted Forstmann
Ted Forstmann was a sterling example in a tarnished field
Borders on the verge of bankruptcy
After British chain WHSmith backed out of a deal with Borders, the British retailer, formerly a subsidiary of the U.S. megastore bookseller, is desperately looking to stave off bankruptcy and Chapter 7 liquidation. I love Borders and have been an avid shopper at countless Borders stores near where I have lived in D.C., L.A., New
Corus Bank assets: And the winning bidder is…
Starwood Capital Group gets the assets in a consortium with TPG capital, Perry Capital and WLR LeFrak (another Wilbur Ross company – this guy is cleaning up in the FDIC private equity bonanza). Here’s the press release: The Federal Deposit Insurance Corporation (FDIC) has signed a bid confirmation letter to sell a 40 percent equity
Sheila Bair and the case against a super-regulator
There is an effort underway to install the Federal Reserve as super-regulator for all banks and financial institutions, concentrating power in one institution. I find these efforts one of the most disturbing outgrowths of the financial crisis we have been witnessing. Such a system is sure to increase the power of too big to fail
The FDIC to draw on its line of credit at Treasury soon
The FDIC has just released a press statement outlining the second quarter results for the fund and the financial institutions it regulates. What was particularly notable in the statement was the decrease in funds available to deal with failed institutions and the increase in the number of problem institutions to 416. This surely indicates that
The FDIC and the socialization of banking losses
With the Federal Deposit Insurance Corporation (FDIC) about to release its latest figures for banks it regulates and its own financial condition, now is a good time to review its role in this crisis. This post is about the FDIC’s role in the credit crisis, how it seizes banks and why I believe this matters.
Guaranty is bankrupt: BBVA gets its FDIC-seized assets
It’s official: Guaranty Bank is the second-largest bank seized by the FDIC in 2009. BBVA, through its American subsidiary Compass, is increasing its profile in the US. And now it can do so, not only through merger, but through FDIC asset seizure too. Here is the announcement that was leaked just yesterday: Guaranty Bank, Austin,
BankUnited goes bust and is replaced by BankUnited
I was heading to dinner with Marshall Auerback when the news of the BankUnited bust came into my inbox. I see this as fairly big new for what it represents. We are witnessing a sea change in how FDIC seizures are done here with private equity companies ready to get in on the profits. Let
Putting the shadow banking system back in vogue
Let’s talk a little about the data released on Friday. On the plus (contrarian) side, everybody is talking about the unemployment number and NOBODY happened to mention that consumer credit was UP on Friday, even before TALF. I think we are very close to the bottom. I think that New York Fed President Dudley is screaming to the investment funds, hedge funds, private equity to do these deals with
B&B secures private equity rescue funding
The Times reports today that Bradford and Bingley was rescued from the verge of collapse by private equity investors. This follows their report at the weekend on the dismissal of the Chief Executive and the profit warning they have issued. See my Saturday post on that topic. The events at B&B are absolutely shambolic. Down