Private equity comeback to alter U.S. bank landscape

By Paritosh Bansal

NEW YORK (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."

As real estate markets continue to crater, many of the 8,300 U.S. banks will suffer, and some will fail.

Private equity funds, meanwhile, have roughly $1 trillion of untapped funds at their disposal.

Some buyout funds are dipping their toes in the water now.

Firms including Wilbur Ross's WL Ross & Co, Carlyle Group CYL.UL, Blackstone Group (BX.N) and Centerbridge Partners teamed up to take over Florida-based BankUnited in a government-assisted deal announced on Thursday.