It's become trite, even if accurate, to repeat the Warren Buffett quote that it's only after the tide goes out that you see who's been swimming au naturel.
With banks feeling pain (and some going out of business), lending tighter than ever, and commercial real estate owners and investors facing coming waves of painful refinancing at rates they may not be able to afford, there's been an assumption that private equity could save the day.
Blackstone has been in talks with large regional banks in the U.S. about providing capital for lending, according to the Financial Times. According to company president Jon Gray, the mechanism would work by a bank originating loans and Blackstone moving to its insurance customers, for which it does asset management. The customers would pay a fee to Blackstone.
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