Private Equity Investment in U.S. Banks

Private Equity and Financial Stability: Evidence from Failed Bank Resolution in the Crisis

“…This paper connects to several strands of literature. It is related to an extensive literature that studies the role of private equity in the economy (e.g., Kaplan, 1989;Lichtenberg and Siegel, 1990;John Lang and Netter, 1992;Boucly, Sraer, and Thesmar, 2011;Lerner et al, 2011;Cohn, Hotchkiss and Towery, 2013;Davis et al, 2014;Bernstein and Sheen, 2016;DeYoung et al, 2018), and particularly in some regulated industries in recent work (e.g., Eaton, Howell, and Yannelis, 2019;Kirti and Sarin, 2020;Gandhi, Song, and Upadrashta, 2021;Gupta et al, 2021). These studies mostly focus on firms and almost exclusively on normal times, while our focus is on the distressed state of the world.…”

Private Equity and Financial Stability: Evidence from Failed Bank Resolution in the Crisis

“…This paper connects to several strands of literature. It is related to an extensive literature that studies the role of private equity in the economy (e.g., Kaplan, 1989;Lichtenberg and Siegel, 1990;John Lang and Netter, 1992;Boucly, Sraer, and Thesmar, 2011;Lerner et al, 2011;Cohn, Hotchkiss and Towery, 2013;Davis et al, 2014;Bernstein and Sheen, 2016;DeYoung et al, 2018), and particularly in some regulated industries in recent work (e.g., Eaton, Howell, and Yannelis, 2019;Kirti and Sarin, 2020;Gandhi, Song, and Upadrashta, 2021;Gupta et al, 2021). These studies mostly focus on firms and almost exclusively on normal times, while our focus is on the distressed state of the world.…”