The Carlyle Group and company received up to $4.9 billion in FDIC subsidy for taking over BankUnited. Shareholders were wiped out.
Who knew the crisis would expand taxpayer subsidies for private equity underwriters (PEU's)? Who knew it would provide PEU's a captive bank? That knowledge must be shared.
Private Equity Leaders Forum 2009, "Buying a Failed Bank: Opportunities and Pitfalls" will be held on December 10th in New York City. The press release states:
Private Equity Leaders Forum 2009 will examine the dynamic opportunities and potential pitfalls for private equity firms exploring buying a failed bank under FDIC's new regulations.
It seems the floodgates have opened with the loosening of regulation on private equity firms buying stakes in banks and the "piles" of uninvested capital.
The problem is more than PEU taint in America's banking system. Shadow bankers and their skanky financial products will soon be covered under Uncle Sam's "too big to fail" umbrella. More bizarre contortions for Wall Street. Patty Hearst syndrome?