Smart-Stock.net

An article last week on boston.com about distressed asset investment echoes the sentiments described in last week’s blog; namely, that some of the country’s most significant investors are clamoring to buy up the same distressed assets as Uncle Sam.

Bank of New York Mellon and Boston’s Bain Capital, and investment firms like New York’s Blackstone Group, are among those hoping to make such buys.  Ronald P.O’Hanley, BNY Mellon’s CEO, wants his group’s trillion-dollar investment group to have the same access to distressed assets as the government:

“We’re suggesting that it’s a way to implement the bailout, to have an auction. We’re suggesting that it go beyond the Treasury, and that the Treasury right from the beginning invite others in to invest with them. There are lots of distressed funds waiting to buy. An auction process will provide a mechanism to bring those players in.”

Think about it.  These immensely wealthy companies wouldn’t be so gung-ho to invest in distressed assets if there weren’t serious opportunities for profit.  Furthermore, unlike the nation’s banks, private equity firms like these are in relatively solid financial shape, allowing them to buy up such assets.  Better private equity firms paying for them than us, the taxpayers.