Thursday, August 6, 2009

ECW and PEC Make News

The Economic Club of Washington hosted Christina Romer, Obama's chief economist. Carlyle Group co-founder David Rubenstein introduced Ms. Romer. Rubenstein conducted the Q & A session following her remarks.

Later in the day, the Private Equity Council asked for relaxed regulations for private equity underwriters (PEU's) buying banks. They want lower capital requirements than proposed and a shorter term investment window, 18 months vs. 3 years.

The FDIC will move fast in finalizing the guidelines. Like health care reform, the devil will be in the details. The PEU devils are primed to get their way. They know how to generate huge profits on the taxpayer's back.

Congress and the White House know how to fork over huge chunks of government business to PEU's, when not granting direct handouts. Carlyle & company got $4.9 billion in FDIC subsidies in their purchase of BankUnited.