FDIC Proposed Policy Statement on Private Capital Investor Purchases of Failed Banks
On July 2, the FDIC released a proposed policy statement that would impose a number of new requirements on private capital investors seeking to acquire a failed depository institution from the FDIC. These include, among other things, requiring covered depository institutions to maintain a 15% Tier 1 leverage ratio for at least three years, imposing minimum ownership periods on investors, and expanding the scope of cross-guarantee liability. As currently proposed, the policy statement would likely have a dampening effect on private capital investor interest in acquiring failed banks and thrifts.