Blackstone Plans $1 Billion Failed-Bank Fund

The private equity giant is in preliminary talks to raise $1 billion for a blind pool to acquire failed banks. The planned fund follows Blackstone’s purchase in May—alongside W.L. Ross & Co. and the Carlyle Group—of BankUnited Financial Corp. and January’s news that billionaire entrepreneur Richard Branson had approached the firm about backing his bid for the failed British lender Northern Rock.