After Blackstone Group LP's most recent earnings call, the publicly traded
buyout firm's president Tony James commented on the state of banking.
"There's a lot more pain to be taken in financial institutions,
particularly the regional banks," he said.
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James may be right, or James may be wrong. He's certainly
talking up his own book. PE firms would like the opportunity to buy
stakes in commercial banks beyond the 25% threshold the government
allows without treating them as bank holding companies. This may well
be his way of putting a little pressure on the Federal Reserve, which
has been wary of changing those policies, to loosen up.
Despite
the rules, a few banks -- notably Washington Mutual Inc. and National City Corp.
-- have raised capital from private equity firms. - Matthew Wurtzel
See story from Reuters
