Sheila Bair Critical of Blackstone Acquisition
Former FDIC Head Sheila Bair has voiced her criticism of Blackstone’s recent multibillion-dollar acquisition of Promontory Interfinancial Network; Ms Bair tells the FT that Promontory’s business model, “is just gaming the FDIC rules. The FDIC takes all the credit risk, and Promontory gets the profit.”; Promontory Interfinancial Network was run by former comptroller of the currency Eugene Ludwig; the company does not agree with how Ms. Bair views their business model and they released a statement to the FT, “The significant technology and infrastructure we’ve invested in building is a valuable service for depositors to more efficiently accomplish what they can otherwise already do . . . in a much more burdensome manner.”; Promontory has more than 3,000 banks that participate in their network. Source.