Money | private equity Private Equity Players Want In on Banking Fed resists easing restrictions on risky, cash-rich enterprises By Kevin Spak Posted May 6, 2009 9:22 AM CDT Copied Employees of FDIC leave the IndyMac Federal Bank headquarters in Pasadena, Calif. A trio of private investors, including J.C. Flowers & Co., have teamed up in an effort to buy failed thrift. (AP Photo/Kevork Djansezian, File) Even in the midst of the banking crisis, numerous entities are willing to buy the big banks, the New York Times reports. Private equity groups like J.C. Flowers & Company are itching to snap up the cash-strapped behemoths, but the Fed won’t let them. It’s worried that selling banks to the notoriously risk-loving private equity crowd would invite a future crisis. “I don’t think the Republic is going to be brought to its knees if private equity owns banks, personally,” says J.C. Flowers, who last year bought a tiny Missouri institution just for its national bank charter. The government fears non-banks manipulating the banking system, but private-equity tycoons counter that what the system needs is huge cash infusions—something only they are in a position to provide. "I find it to be an extraordinary time to invest," says Flowers. Read These Next Police chief releases details in Annunciation Church shooting. Minneapolis shooter had a plan—and grievances. Disturbing details are emerging about the Minneapolis shooter. Jay Cutler can't avoid jail in DUI case. Report an error