Showing posts with label Private Equity. Show all posts
Showing posts with label Private Equity. Show all posts

Thursday, August 27, 2009

FDIC revises rules on private equity investments

According to the New York Times, "The Federal Insurance Deposit Corporation imposed(new rules governing investments by) private equity firms seeking to buy failed institutions, although they eased more onerous proposals in hopes of luring them to the table." The new rules are designed to address concerns that "private equity buyers might engage in aggressive practices that could put its deposit insurance fund at risk."

"The rules..require private equity-controlled banks to pour enough capital into a failed bank so that it has a cushion of at least 10 percent of its assets for three years. The F.D.I.C. dropped a requirement that private equity firms supply additional capital in the event of a severe downturn, required private equity firms not sell an acquired bank for at least three years, imposed restrictions barring the acquired bank from lending to companies affiliated with the private equity buyer, and exempted private equity firms from complying with the higher capital standards if they joined forces with a traditional bank buyer."

The new rules apply "only to future deals, and (will be reviewed) in six months."

The article stated that "Private equity firms said the new rules would make them less likely to buy a failed institution on their own."

But another article in the same paper noted that:

"Billionaire investor Wilbur L. Ross..said he plans to invest further in banks under the new regulations.

'We will now be able to be a bidder,' Mr. Ross said. 'We’ll be in the game..' "

Thus, concern that these new federal rules would reduce the number of private equity firms buying banks can be seen as a private equity industry negotiating tactic used to minimize the application of common sense public interest risk controls.

For minority banks, this means that investors will be encouraged. We continue to believe that value in this sector is growing, and note new interest in our website http://www.mbflp.com/.

We also note several new black banking initiatives:
a. The Black Bank Initiative. www.blackownedbank.com
b. “National Community Reinvestment Day” on September 4, 2009. Urging individuals to open accounts at black owned banks.
c. Atlanta Black Banking Initiative. Sponsored by the Overground Railroad.

Wednesday, January 2, 2008

Alternative Investment Roundup, January 27 through 30, 2008 in Scottsdale, AZ

"Bringing Together Leading LP’s and GP’s – Over $1 Trillion in LP Assets Represented"

Complimentary attendance for Qualified Plan Sponsors
See list of attending Institutional Investors (click here for details)

The Alternative Investment Roundup is four concurrent conferences at the same location. The Conference examines Private Equity, Hedge Fund, Institutional Real Estate and Portable Alpha Strategies. The programs share networking events, offering an opportunity to meet a wide array of alternative investment professionals and investors.

Over 500 senior decision makers attended last year’s event. Creative Investment Research is a Media Sponsor for this year's event.