Wednesday, August 25, 2010

Carlyle Can't Make Bank Deals Work

The Carlyle Group's Olivier Sarkozy spoke to Bloomberg about bank acquisitions. He stated Carlyle had not been able to make the numbers work on buying failed banks since their BankUnited deal with the FDIC. Carlyle is one of many private equity underwriters (PEU's) in BankUnited. The FDIC gave $4.9 billion in subsidy on BankUnited.

Is that the difference in making Carlyle's numbers work, FDIC subsidies? Olivier Sarkozy didn't elaborate, but his PEU has a history of lining up at the federal till.