District's Carlyle Senses a Profit in Toxic Bank Assets
What system is that, asshole?
Seeking to jump-start the economy, Treasury Secretary Timothy F. Geithner last week said he will seek private-sector help for the banks, offering loans at favorable rates and putting up government backing to reduce the risks to investors like Carlyle.
With $40 billion in cash on the sidelines waiting for the right play, Carlyle could find many profitable deals in the financial sector.
Two of the firm's co-founders, William E. Conway Jr. and David M. Rubenstein, have been saying for months that there is a role for private equity in the bank bailout and that there's money to be made.
"Private equity has a lot of experience buying assets at distressed prices, and we expect to see a lot of attractively priced assets," Rubenstein said in a September interview. "It's likely that private equity will be a big investor in this area. It's good that private-equity firms are in good shape and have the resources to buy some of these assets and help the system."