Fed Ponders Private Equity In Banks |
| Forbes - Jul 4, 2008 |
The U.S. Federal Reserve has already taken several unprecedented steps to assist investment banks, including allowing them to access its short-term lending facilities, collateralize their borrowings with illiquid securities of questionable market value, and brokering and funding the sale of Bear Stearns to JPMorgan Chase.
Now the Fed is believed to be considering easing rules to allow private equity firms to take substantial holdings in bank shares, as banks are finding themselves increasingly unable to attract traditional sources of capital.
--Ordinary investors have little appetite for investing in bank shares. Banks with the greatest need for capital are therefore unlikely to seek additional funding via a public share offering, especially as nearly all bank shares issued in the last year are currently trading below their offering price.
Read Full Article from Forbes
- Posted: 2008-07-04 09:29:02
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