Blackstone to Banks: We Don't Need You

Blackstone to Banks: We Don't Need You

Blackstone has decided to disintermediate its banks when it comes to raising money for leveraged loans. Hell, Blackstone is a bank, I'm just surprised it's taken them this long to take this step.

Yes, it's easier to just mandate a bank to raise the money than it is to go out and raise it yourself. But Blackstone isn't about being lazy, it's about being profitable. And if the banks themselves don't have the liquidity to take a large chunk of the deal, then really there's no point in paying them their massive fees.

This is really bad news for Wall Street, which has in recent years relied enormously on private equity for its fee income.

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