The Carlyle Group knows Sheila Bair won't hand out $2.3 billion in cash with every bank deal. Carlyle's recent bank deals have been with TARP recipients, those still owing Uncle Sam. Honolulu's Central Pacific Bank follows Hampton Roads Bankshares into Carlyle's portfolio.
Carlyle and Anchorage Capital plan to invest $98 million in equity (75 cents a share) in Central Pacific, which has struggled under the weight of commercial real estate and construction loans. While existing shareholders will take a 50% haircut, they won't be zeroed out, like BankUnited shareholders under the FDIC-Carlyle/Blackstone/Ross/Centerbridge deal.
Carlyle's 24.9% of Central Pacific will be held where? If it's like Hampton Roads Bankshares, look offshore. That's where pirates roam, when they're not raiding the federal treasury.
