DEALTALK-Private equity comeback to alter US bank landscape

(For more Reuters DEALTALKS, click [DEALTALK/])

* BankUnited deal highlights LBO firms' focus on banks

* Private equity could reshape U.S. banking industry

* Regulators working with private equity investors

By Paritosh Bansal

NEW YORK, May 22 (Reuters) - After a disastrous foray into banking early last year, private equity is making a cautious comeback with deals such as the BankUnited takeover, and their return will likely change how the industry looks.

Regulators appear to be working with private equity firms looking to buy banks, and in the next year or two several U.S. regional lenders could end up in the hands of buyout funds, banking analysts said.

"I can't picture a 5,000-branch bank coming out of this. But could I see 300-, 400-, 500-branch networks stitched together? I think so," said Seamus McMahon, chief executive of bank consulting firm McMahon Advisory LLC.

"Private equity firms are going to have a lot of influence."