Despite the beating it has taken in Chrysler, private equity fund Cerberus has about $7 billion on the sidelines to put into bank assets, many of which are going for a fraction of their face value.
One expert commented in The New York Post "I think what you’re going to see is the deep- value buyers coming in to get $1 for 50 cents," said Rick Maples co-head of in vestment banking and head of the financial institutions group at boutique investment firm Stifel Nicolaus.
In a perverse way it is good news for banks. At least someone will buy something from them, which should raise the value of their troubled assets over time.
Douglas A. McIntyre
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