Monday, June 1, 2009

Carlyle in Discussions to Buy "Bank of Banks"

The FDIC seized Silverton Bank on May 1. The Carlyle Group is interested in owning Silverton, which serves bank vs. individual customers. WSJ reported:

Like the BankUnited transaction, the Silverton deal would come with government assistance, according to people familiar with the deal. That means the Federal Deposit Insurance Corp. would share in future loan losses at the bank, limiting Carlyle's downside.

These non-TARP deals come without restrictions. Socialize the losses, privatize the gains.