Email of the Day

Doug writes: “The question I’ve wondered about is why aren’t PE firms starting de novo banks with their equity like they do in times of distress in the insurance market? Deposits are easy enough to purchase and can be levered quite high (even today under FDIC guidelines), loans can be purchased in the market and returns should be great.  This happens with the PE firms coming into in the regulated insurance market after most of the large disasters. I have been told by a few that the problem rests with the FDIC that isn’t interested in chartering more banks.”