Despite the beating it has taken in Chrysler, private equity fund Cerberus has about $7 billion on the sidelines to put into bank assets, many of which are going for a fraction of their face value.
One expert commented in The New York Post "I think what you're going to see is the deep- value buyers coming in to get $1 for 50 cents," said Rick Maples co-head of in vestment banking and head of the financial institutions group at boutique investment firm Stifel Nicolaus.
In a perverse way it is good news for banks. At least someone will buy something from them, which should raise the value of their troubled assets over time.
Douglas A.McIntyre is an editor at 24/7 Wall St.
