FT.com – Private equity consortium wins BankUnited auction

Following the collapse of BankUnited:

Regulators have worried that sales of troubled banks to private capital should not look overly generous. Those fear were fed when Chris Flowers, founder of private equity firm JC Flowers, said the investor group that bought IndyMac’s assets had all the upside for the failed California bank, while the government had all the downside. Calls to Mr Flowers were not returned.

via FT.com / Companies / Banks – Private equity consortium wins BankUnited auction.

“The government had all the downside”? The taxpayer, surely? No government should socialize business risk.

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