Friday, May 6, 2011

Carlyle's Peachy Banking World

The Carlyle Group will invest in a Brand Bank, a Georgia commercial banking institution.  A $125 million capital raise expanded to $200 million.  Investors grew from 7 in November 2010 to an undisclosed number.  Recently, Carlyle announced a bank deal in North Carolina.  Before that it was Virginia, Hawaii and Florida.

At what point does an executive or board member pick up the phone and call the Carlyle Group?

Desperate times call for desperate measures, even in the world of high finance.  Carlyle loves market dislocations, which enable shadow bankers to become real bankers.  Assets come cheap, even cheaper with federal subsidies from direct FDIC cash injections (BankUnited), TARP money (Boston Private) or exchange programs (Hampton Roads/FNB/Central Pacific)  and classifying deals as tax exempt.

It seems Southern Banks need Carlyle around...