Mega-Funds Talk Back To FDIC on Bank Deals
Monday was the last day for comments on the FDIC's proposed rules for private equity investments in failed banks. A group of large private equity firms calling themselves the "Private Equity Commenters" submitted a letter, which we've posted below. The letter, submitted by law firm Simpson Thacher, speaks for Blackstone Group, Centerbridge Partners, Corsair Capital, Irving Place Capital, Lightyear Capital, Oak Hill Capital Partners and TPG Capital. A few of the firms have already been involved in banking transactions--Blackstone and Centerbridge were part of the group that took over BankUnited. The letter addresses the same concerns many others have expressed regarding required capital levels, cross-guarantee liabilities, and the definition of "source of strength," among others, while highlighting the benefits of private investments in banks. Those include job preservation, community support and increased competition which benefits customers, the letter states. At around 11 pages, it's probably the most in-depth response the FDIC has recieved to date. Read it in full below.
