peHUB First Read

* A nation of morons, run by idiots.

* The Fed relaxed rules governing PE ownership in banks, but it may be one of those solutions that doesn’t make anyone happy. Banks can’t get the amount of capital they want, PE firms can’t get the control they want and critics don’t like the government having budged even a few percentage points.

* The FBI reportedly has opened investigations into possible fraud at Freddie Mac, Fannie Fae, AIG and Lehman Brothers.

* Roger Ehernberg has some questions about Goldman and Morgan Stanley’s transition into bank holding companies. Namely: “First, are they really going to take in core deposits and run branch networks, and if so, is the FDIC on the hook if the banking side of the house blows up?”

* Dear John Thain has some ideas for a new regulatory structure.

* Has a third Google founder emerged?

* Since I’m in Denver this morning, let’s give some love to TechStars, which is really becoming a force on the local VC scene. Dan Kaplan of VentureBeat takes a look at some of their companies during presentations in Silicon Valley (including from Intense Debate, which was just acquired by Automattic).

* A WaMu Timeline.

* Wallstrip on ACC (the student housing REIT, not the sports conference): [youtube]http://www.youtube.com/watch?v=jssHI3p1iso[/youtube]