It was almost amazing that private equity funds never acquired many banks or other depository institutions, despite the lending woes that came to pass. For some time there was value there before the logic and rationale behind credit evaluations were tossed out the window. We had discussed this with many groups last year and the answer was always that the private equity firms were sitting out to avoid the relative valuation erosion as peer-pressure drove down the value of the solid companies.
Wilbur Ross may soon be making a change to this approach of avoiding the group. Last week there many reports out of Reuters, Crains, and others discussing Ross's intent to go after depository institutions.
The past articles discussed and pondered different aspects that Ross and his new backers might pursue, but new information from today may shed a bit more light on Ross intends to invest this money and how sovereign wealth funds may be involved in this.
Continue reading the full article at 24/7 Wall St.
Regional & community banks: Soon under Wilbur Ross & sovereign wealth?
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