U.S. Treasury Chief Tim Geithner sold world economic leaders on his plan for public-private partnerships to save the global financial system. Private equity underwriters (PEU's) are the big winner. The Carlyle Group raised $1 billion for investment, with plans for $2 billion more. This is on top of a $1.35 billion distressed debt fund. The Stimulus package includes $26 billion in tax breaks for companies buying back their own debt. Citizens, who dipped into their IRA or 401(k) to save their house, get no break. WaPo reported:
Two other signs are worth noting. One, Carlyle co-chairs two efforts at remaking the global financial system. Co-founder David Rubenstein heads the World Economic Forum study, while Senior Adviser Arthur Levitt leads a financial industry study group.
Two, what Carlyle's Rubenstein says, the Obama team does. The blue links to the current White House are numerous. Corporafornication remains alive and well.
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 other signs are worth noting. One, Carlyle co-chairs two efforts at remaking the global financial system. Co-founder David Rubenstein heads the World Economic Forum study, while Senior Adviser Arthur Levitt leads a financial industry study group.
Two, what Carlyle's Rubenstein says, the Obama team does. The blue links to the current White House are numerous. Corporafornication remains alive and well.
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