Private Equity Firms Look To Take Over Banks

New York Times:

CAINSVILLE, Mo. -- No one seems to want to own a business in this dusty, windswept corner of rural America, population 370, with its crumbling sidewalks and boarded-up storefronts.

Except, that is, for J. Christopher Flowers, a media-shy New York billionaire who last year bought the First National Bank of Cainesville, one of the United States' smallest national banks.

Read the whole story: New York Times

Comments

[sposton]

"In some cases, he hopes, the federal government will help."

Of course, the federal government is there to help leaches thrive. Our government is an integral part of a mechanism that helps transfer wealth from many to few.

[Sundialsvc4]

Thousands of banks are well-run, profitable institutions. I would not touch any of the "megas" with a hundred-foot pole until they are broken up, reorganized, and shed of trillions of dollars' worth of speculative illusion.

[peacekitten]

under NO circumstances in this universe or any other should these "private equity" companies be allowed to become major players in the banking industry, and ESPECIALLY not by taking the government to the cleaners first.

"private equity" companies are the reason for the creation and subsequent disaster known as derivative trading that has nearly taken down the entire world's economy while a few, especially the John Paulson named in the article, have profited so greatly that they would embarrass royalty.

if geithner gives in to this, then we should all just start using the money from monopoly games, because it will be worth about the same.

the total looting of our tax payer dollars has got to stop. bring these banks under government control, place them in receivership, and get it over with. start making some of the mega-banks divest themselves of some of their assets instead of shoveling money at them that they just sit on, and get the financial markets turning again.

these people have st0len enough.

[drymartini1]

PE companies dont do derivatives that much. thats Hedge funds.

PE companies take a public company private, turn it around and take it back public. the horizon for turning around a company is usually 10 years or more.

its the public company ceos who think quarter to quarter.

[PlayTOE]

Now the crooks want to buy up banks and rob them from the inside.
Wall street showed how it is done, and now everybody wants in on the scheme.

[sonofsamphm1c]

Good grief, all the screaming on THP about letting the banks fail, and now the people who will dance on the graves of the banks are evil doers.

Tough crowd.

[EinChicago]

Status quo for huff po fringies. First they attack an industry (banks, autos, etc.) and demand it fails. then, when the industry fails, they attack the industry for failing. finally they attack any industry who tries to salvage something from the failed industry.

All while talking out of the other side of their mouths about supporting unions and working americans.

Fringies are as rabid and irrational as fundies.

[jojony]

The Obama administration has proven itself, unfortunately, to be in Wall Street's pocket.

Private Equity firms will have very little real resistance from the fed.

Truly sad.

[YankinCanada]

Dunkin Donuts is owned by the Carlyle Group? I'll never eat there again...can't remember the last time I did.

[YankinCanada]

as soon as I saw the Carlyle Group interested in the same idea, I knew how corrupt it must be.

[drymartini1]

stop portraying Private Equity companies as "grave dancers" or evil.

Private Equity companies have much better work ethic than public companies.

Average horizon for an investment on a portfolio company of a PE company is around 10 years. Whereas, in a public company, the management thinks in terms of quarters.

PE company's management's goals are more aligned with the portfolio company's management much more than a public company's management with its shareholders.

So do some due diligence and then report. and no PE universe doesnt include only Cereberus. there are a lot of great PE companies out there.

[Antifascist-08]

What a load of bull.

[drymartini1]

are you going to put some arguments in ur favor or that was all you had to say !! haha

[notAMoron]

“Lowlife grave dancers like me will make a fortune,” he predicted.

At least this guy has a mirror.

The audacity of these guys to openly talk about how they are trying to burn the public.

[MediaMentions]

This may interest you, as it is closely linked with the current state of the economy: http://www.pressdisplay.com/pressdisplay/showlink.aspx?bookmarkid=VK0TV7T1EEQ7&preview=article&linkid=57838176-00eb-4d69-acab-0bee25aa4715&pdaffid=ZVFwBG5jk4Kvl9OaBJc5%2bg%3d%3d

Best regards,
MediaMentions