Wednesday, October 15, 2008

Carlyle Making Noises About Taking The Plunge Into Bank Stocks

So where can you get the best take on the current investment opportunities in bank stocks?Quite possibly in Dubai.

Back in April, Carlyle Group managing director Randal Quarles said that banks were facing more trouble. He sure nailed that.

Now Carlyle co-founder, David Rubenstein, says there are great opportunities in bank stocks. Rubenstein is spreading these words of wisdom in the Middle East at the Super Return private equity conference in Dubai.

Rubenstein said the financial services sector was a very attractive investment opportunity right now.

He said financial institutions like banks and insurance companies seeking to sell assets are probably going to sell them at distressed prices.

Some smaller banks and financial service companies that need equity injections could also be attractive, he said.

"Right now there's an enormous opportunity for private equity to get into the financial service industry and invest in banks, insurance companies, other organizations that are heavily hit ... by the credit crunch," Rubenstein said in a speech at the conference, according to Reuters.

Rubenstein also said that credit-related investments, such as buying debt, remains very attractive.

If you can get into financial stocks at prices close to where these guys cut their private deals, you are likely to have a solid, big upside, investment opportunity.

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