It took a week for insiders to suggest the FDIC will relax its published "tough rules" for private equity underwriters buying banks. Bloomberg reported:
The Federal Deposit Insurance Corp. may relax proposed rules for buying failed banks after some investors said they would block private-equity firms from participating, according to people briefed on the talks.
The Private Equity Council, a trade group, warned last week that the rules would discourage buyout firms, which have about $400 billion to invest. Industry representatives also outlined their concerns in closed-door meetings, including an invitation- only roundtable this week in Washington with FDIC Chairman Sheila Bair. On July 2, Bair said such investors need guidelines to ensure a “transparent, long-term” approach.
Closed door, invitation only meetings? Since when is that part of public comment? It wouldn't be the first time the Obama team talked tough, before catering to the big money boys. Carlyle Group & company got $4.9 billion in FDIC subsidy for taking over BankUnited. Existing shareholders were zeroed out. The $4.9 billion came with no TARP strings attached.
To date President Obama is populist talk and corporafornication implementation. Watch the final rules.
