As if on cue for my presentation for communications class tomorrow, a whole slew of links over the weekend about Private Equity:
The NYTimes has a big piece on how private equity firms make profits even when their portfolio companies go under.
Quelle Surprise! New York Times Fails to Call Private Equity Looting by Its Proper Name. Naked Capitalism. Yves Smith is her usual restrained self regarding the practice.
Shareholder Value for Beginners. James Kwak. "Because acting in the best interest of the shareholders, in a time of crisis (or simply given inside information that the bond market doesn’t have), can lead to what Yves Smith, following Akerlof and Romer, calls looting." So perhaps lenders forgot their due diligence.
Next LBO Verse, Same As The First? PE Hub. So what with the easy money gone, what will the future look like for PE?
Regarding the fast implosion of CIT
Goldman's Image Problem. Felix.
In Defense of Goldman's $1 Billion Payoff From CIT. Atlantic Business Channel. Covenants and Hedges are important. If the Government didn't get those into their deal well, they need better lawyers and bankers, don't they?
Well, off to write the actual presentation.