Private equity funds traditionally have not had a lot of time for public investments (not enough control for them) and financial service firms (not the right business model). But the Washington Mutual deal, as we've noted, may change that. Fortune weighs in with an article that notes other private equity firms may take the plunge. National City is reportedly in talks for a deal with KeyCorp, which might involved some cash put up by Kohlberg Kravis Roberts. There are risks of course. Fortune notes that Warburg Pincus took a bath on its investment in MBIA. But the numbers may be too tempting, especially given a lack of other opportunities, and the big funds have got to put their money to work.  

For more:
- here's the article

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