Private-Equity Players Scour Financial Sector for Bargains

January 1 - WSJ - When some super-wealthy investors bought busted savings-and-loans in the late 1980s, the results became legendary. Despite the common belief that these institutions couldn't be salvaged, the thrifts revived as the U.S. economy recovered. Getting in at the bottom of the cycle produced huge gains for the acquirers.

Could a similar scenario play out in the market for subprime mortgages? That question tantalizes some of the most powerful private-equity firms. The collapse of the subprime market has triggered an enormous plunge in valuations of financial stocks. Read More (subscription required).