Visit Mish's Global Economic Trend Analysis

Fed Looking To Bend Rules To Aid Banks

Posted on June 26, 2008

FCNBC is reporting Fed May Ease Rules on Private Equity Bank Stakes.The U.S. Federal Reserve is considering steps to make it easier for private-equity firms and others to invest in banks, the Wall Street Journal reported on Thursday, a move that could open the door to more capital for cash-starved banks.Fed officials recently have met with big buyout firms, including J.C. Flowers, Carlyle Group, Kohlberg Kravis Roberts and Warburg Pincus, and banking lawyers to discuss the obstacles, according to people familiar with the matter.Under federal law, to own more than 24.9 percent of a bank, an ent...

Original article link


arms , bernanke , fed , federal reserve , real estate , the fed