Subscribe to Dollars & Sense magazine. Recent articles related to the financial crisis. FDIC Bled by Bank Losses, Sets P.E. RulesFirst, the NYT on the scary FDIC banking report. As the article notes, the warnings about large numbers of banks should be contrasted with the financial sector's surge on Wall Street.And then there's Reuters' Rolfe Winkler on new FDIC capital-adequacy rules for private equity firms. Interesting commentary concerning the FDIC's slipping and sliding regarding definitions of Tier-one capital in promulgating the new rule. Winkler thinks these may serve to deter private equity investors from issuing lower-quality equity in the future. So while the new rules allow for a lowering of capital-adequacy ratios for P.E. firms looking to buy distressed banks, they may serve to tighten standards in a part of the market that really needs it. Labels: bad loans, banking system, FDIC, FDIC fund, financial crisis bailout, private equity, Rolfe Winkler, Sheila Bair, US Treasury |