The big PE news today was obviously the FDIC and private equity's investments in failed banks. You can find our coverage of that here. Fortune's Take on it: Regulators cleaning up after bank failures showed Wednesday how far they're willing to reach out for help. (Fortune) How to Give a Lousy Presentation: Fifteen ways to make a bad impression. Some of these are totally obvious, but number 11 or 9 always seem to get overlooked. (BusinessWeek) Big Questions: What good does private equity do? (My answer: They create value, duh.) (Economist) Results: NB Private Equity earnings rose this quarter. (WSJ) PE Interview: "The era of highly leveraged, high-priced private equity deals is being replaced in Germany by smaller acquisitions focused on long-term growth," according to Lewin Berner. (WSJ)
Naturally the private equity council watched today's FDIC board meeting (see earlier) with great interest--many of its members have already made bank investments, which may not necessarily be exempt from the new investing rules. The PEC, which represents the 11 largest buyout firms in the US, issued a statement today which expresses continued criticism of the 10% capital requirements for banks under the ownership of private equity firms. The FDIC lowered this requirement from its initial proposal of 15%. The PEC was so critical, in fact, that it pulled out private equity's secret pity weapon, reserved only for the direst of situations--the old "We are do-gooders, we invest public pension money" trick. The FDIC wouldn't really want to impose such harsh requirements on the money managers of retired firefighters and teachers, would it? Well, maybe that wasn't the exact wording. The PEC did express appreciation of the FDIC's six-month review period for the rules. A lot can happen in six months, and perhaps the FDIC will loosen its requirements even more at that time. You can read the PEC's official statement below.
After passing its revised policy for private equity investment in failed banks this afternoon with a four to one vote, the FDIC has released its full statement on the official policy. You can browse all 39 pages of it below. Here's the summary from the press release: The FDIC Board today adopted a final Statement of Policy on the Acquisition of Failed Insured Depository Institutions. This policy statement provides guidance to investors interested in acquiring or investing in the deposit liabilities of failed banks or thrifts about the standards they will be expected to meet in order to qualify to bid on a failed institution.
WASHINGTON (Reuters) – U.S. banking regulators voted on Wednesday to ease rules applying to private investment in troubled banks. Before the 4-1 vote of the Federal Deposit Insurance Corp board, chairman Sheila Bair said the agency’s staff have made “significant” changes to previously proposed guidelines and had dropped one of the requirements. Dropped from the […]
NEW YORK (Reuters) – Two accounting firms and a law firm won dismissal of a lawsuit on behalf of former Refco Inc currency trading customers who lost more than $500 million when the defunct futures and commodities broker went bankrupt. U.S. District Judge Gerard Lynch on Tuesday said Marc Kirschner, a trustee representing the customers, […]
Here are some potential target ideas, rumored or official, to jumpstart your deal pipeline. Our sources are various news reports and the Buyouts "Seeking Buyers" list. For prior lists, see below, and send any additions my way. Saxon Oil Company, based in Dallas, has engaged SMH Capital to advise is on evaluating strategic alternatives. (Read More) Essentially Group Ltd, a sports market group based in London, said it was in preliminary talks with a third part over a possible sale of the company. Dow Jones is in the early stages of selling its stock market index business. Goldman Sachs is running the process. Morgan Stanley is considering selling its Van Kampen Investments unit. The company has been approached about a deal. (
NEW YORK (Reuters) – Even as more investors swoop in on distressed assets flooding the market, the very best bargains may already be in the rear-view mirror, Oaktree Capital Management Chairman Howard Marks told Reuters. In the aftermath of Wall Street’s collapse last fall, investment banks and money managers looked forward to snapping up debt […]
WASHINGTON (Reuters) – U.S. regulators are still finalizing guidelines for private equity investments in distressed banks but expect to have a final vote on the issue later on Wednesday, the acting director of the Office of Thrift Supervision said. “We’re still in the process of discussions on what that document will look like,” John Bowman […]
Celerity Partners has sold its 17.2% stake in PEER 1 Network Enterprises Inc. (TSX: PIX) to Clairvest Group Inc. (TSX: CVG) for US$23.36 million. PEER 1 is a Vancouver-based online IT hosting provider.
Yellowstone Landscape Group Inc., a Dallas-based portfolio company of Gridiron Capital, has acquired Floridian landscaping company Dolphin Landscape. No financial terms were disclosed.