Bill Bonner in The Daily Reckoning says private equity firms are one of the biggest humbugs of modern capitalism.

They buy companies from public shareholders, make a few cosmetic changes, and sell them back at a higher price. And now the granddaddy of private equity, Kohlberg Kravis Roberts (KKR), will be selling its own shares on the NYSE.

If the likes of KKR could reliably add value to companies and beat the market, they wouldn’t need to raise capital on a public exchange, says Bill. That’s why KKR’s last public offering in Amsterdam has lost 57% in value since 2006…

Fifth Third Bancorp (FITB) is eying larger rival National City Corp. (NCC), the ninth-largest U.S. bank with approximately $150 billion in assets, as a potential acquisition target, according to several media reports.