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![]() Entries tagged "FDIC"The chairman has spokenChris Dodd has put forward a tough financial services reform bill. Now he can get started on one that might pass. A chill from the FDICThe regulator seems to suggest that if private equity wants to get involved in banking, it better find some healthy banks in which to invest. The new super-regionalsWith the biggest banks busily digesting massive acquisitions and bumping up against deposit caps, midtier acquirers are gobbling up FDIC-seized banks. Haven't we seen this before? Buyout blackball?As the crisis unfolded, private equity rushed to buy battered banks, only to discover this was one club they had difficulty getting into. Tanking banks and M&ATroubled banks have meant trouble for classic mergers and acquisitions in the industry. And now for the main courseA year after the worst financial meltdown since the 1920s, capital markets are giving the country's banks a vote of confidence. Whether that turns out to have been a good idea or not, the surge in capital raising, combined with a stream of bank seizures and generous terms offered by the government to acquirers, is prompting a consolidation wave that could rival any on record. Shearman hustles for BB&T-Colonial dealBB&T turned to advisers to navigate through the deal. Credit Suisse's Doug Simons and Neil Carragher led the BB&T advisory team. Bank shotsAligning the stars for investments by private equity funds in banks. FDIC gets creative with bank disposalsAs bank failures accelerate, the FDIC has had to get creative to handle the disposals. Enter the veterans of bank failures past. Alpha male eats crowGeithner yells at bank regulators, but they keep opposing the administration's overhaul plans anyway. FDIC's private equity roadblockThe FDIC's Proposed Statement of Policy ignores lessons from the early 1990s and will unnecessarily discourage private equity investors. Stringent rules for PE in failed banksThe FDIC board policy statement would establish standards for bidder eligibility for PE investors and nonbank investors seeking to acquire in failed depository institutions through the FDIC receivership process. Front seat at the crisisAttorney Walter Moeling IV has advised Georgia banks for 40 years. In the past, he helped setup banking charters. Now, he's helping firms such as Silverton Bank manage FDIC receivership. Movers & shakers: June 22, 2009Davis Polk & Wardwell hired John Douglas a partner in its financial institutions group. He will head its bank regulatory practice. Douglas was general counsel... Big, bigger and too bigArguments proliferate about just how large a financial sector the U.S. should be. Deck shuffleFor Barclays, the sale of iShares should prove to be an astute maneuver. The limbo lineZombie banks wait for their day of reckoning, but more often than not, the FDIC acts on its own schedule. The scrap heap of history?Amid widening dismay over the bailouts, there is a continuing chorus of economists calling for full nationalization of failing financial institutions. A year unlike any otherTurmoil. Chaos. Bailouts. Conventional deals in 2008 were rare. Many of those that mattered, like Bear Stearns and J.P. Morgan Chase, involved the government. Geithner got it rightCan the financial industry rise to the opportunity? Bad bank, bad ideaBuying up toxic assets from banks will only create more problems. Don't bank on itThe Blackstone-Alliance dust up shows just how hard it is for private equity firms to buy into financial services, and the M&A bar gets ready for Tulane. A matter of interpretationDid fair-value accounting deepen the crisis or provide the remedy? Does the market provide a rational view of true value or a procyclical blast of emotion? The debate roars on, with no end in sight. When Integrity failedNot content with sticking to its home market, a tiny Minnesota bank gambled on Florida real estate and lost. It's hardly alone. Down for the countMark-to-market accounting is crippling the economy. Transactions: Dec. 1, 2008As we move forward, replacing our old experts with new, how much of the old do we abandon and how much do we keep? Consider the case of the Federal Reserve. Tinkering at the edgesThe Fed allows private equity firms to boost passive stakes in banks, but buyouts continue to be difficult. Happy days are/aren't here againLIBOR falls, so do equity markets. Banks get a bailout, but the financial system may have more shocks ahead. The outlook for regulation and the American lifestyle. The ownership societyNow that taxpayers have taken stakes in at least some of the nation's banks, the leash should begin to tighten. Right? Finally, a plan that will workUnlike the bailout bill, we now have a plan that deals with the two fundamental issues crippling the world's financial system: fear and deficient bank capital. Unimpartial arbitersHow the FDIC helped sell Wachovia to Citigroup and then helped sell it to Wells Fargo. Raising the duesThe FDIC calls on banks to rebuild the deposit insurance fund. How much they pay depends on the riskiness of their business. We need to get it rightHow to really fix the financial crisis. Back from the FedSullivan & Cromwell's H. Rodgin Cohen lured J. Virgil Mattingly Jr., a former general counsel at the Federal Reserve Board, to join S&C's Washington office. Banking on LECGChristine Sciacca, a Federal Home Loan Bank System and FDIC vet, has joined advisory and consulting firm LECG Corp. Out of orderThe regulatory system that oversees America's stressed-out financial industry needs an overhaul, but don't expect any big changes soon. The failure optionThe FDIC is taking over more failing banks, and here's where the money comes from. Banks turn to PE firmsBut the growing trend is filled with complications. | ||||||||||||||||
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