UPDATE 2-Carlyle sees opportunity in toxic asset program

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By Megan Davies

MIAMI, April 28 (Reuters) - David Rubenstein, co-founder of private equity firm Carlyle Group [CYL.UL], said the U.S. government program to buy toxic bank loans and securities should provide opportunities for good returns, but he needs to see the rules before committing to it.

"We're always interested in looking for opportunities for good returns. I suspect this will be a good opportunity, but we need to know what the rules are. They haven't been formulated yet," Rubenstein said Tuesday on the sidelines of the Super Return private equity conference in Miami.

He said Carlyle would assess whether to make investments under the Public-Private Investment Program.

Money manager Invesco Ltd (IVZ.N: Quote, Profile, Research) and billionaire investor Wilbur Ross on Monday announced plans to lead a group committing $1 billion to PPIP.

Rubenstein said in March that Carlyle was considering participating in the program but that investors were concerned about whether they would be subject to additional regulations, disclosure or compensation limits.

"People want some assurance that if they do this and make money, they won't be seen later as doing something improper," he said in a panel discussion at the Super Return conference later on Tuesday.

"People in the private equity world are interested in this but they want to make sure they know the ground rules, that the rules won't change later, and that there's going to be something to buy," he added.