Wednesday, May 6, 2009

Lowlife Grave Dancers to Make a Fortune

Private equity underwriters (PEU's) circle wounded banks, waiting for the least dilutive time to pounce on their prey. Bank regulators wear referee uniforms. It seems three PEU's have to share a carcass. Nonbank holding companies can only hold 28% of a commercial bank.

Christopher Flowers has big plans in this area. NYT reported:

Mr. Flowers has estimated his banking empire will one day earn at least a 35 percent return on banks it has bought in the United States. “I find it to be an extraordinary time to invest,” he said.

He was even more blunt when he spoke to an industry group in New York earlier this year. “Lowlife grave dancers like me will make a fortune,” he predicted.

Lowlife grave dancers? Wall Street is back to normal. Greed returns, with taxpayer provided leverage.