Theo O'Brien

Private Equity to the Rescue of Banks?

Interesting article, I've been hearing a lot about this potential rescue by private equity firms but frankly I just don't see it happening. I do believe that private equity will play a major role in recovering AFTER the banks hit bottom. It seems that there is still a lot of fallout remaining and the private equity industry probably sees that. If anything, a few private equity groups will be unable to restrain themselves and buy some big shares in a few banks now that the SEC has relaxed some rules that previously restricted a private equity firm's purchase in a bank to under 25%. But overall I think this one is up to the Fed.