"M&A Outlook 2009: Parr and Cohen on the New Administration’s Challenges"The Deal - March 13, 2009
Rodge Cohen spoke on a panel at The Deal’s M&A Outlook 2009 conference with Lazard’s deputy chairman Gary Parr. They discussed issues that the new administration is facing such as increased regulation, transparency and deleveraging. Mr. Cohen discussed concerns about additional capital sources, “We can’t get it right so that private equity can really be a major investor in financial services companies, particularly depositories. The unwillingness to change the approach – it’s not the law, it’s not the rules – it’s to change the approach to permit private equity to invest…,” he said. “I think we have to be realistic, $700 billion [in bailout money from the government] is not enough. …It’s the trillion word, and I think we have to recognize that if we’re going to get sufficient capital in the system to prevent deleveraging. This whole debate about banks going out and using the capital to lend is totally misguided. If the capital enables banks to stabilize their current label of lending, that would be a major victory, much less lend any more,” he added.