Article: FDIC Adopts Modified Policy Statement on Private Equity Investments in Failed Banks.(Federal Deposit Insurance Corp.)

Originally published August 26, 2009

Article by Scott A. Anenberg , Thomas J. Delaney , Charles M. Horn , David R. Sahr and Jeffrey P. Taft

Keywords: FDIC, private equity, failed banks, failed thrifts, de novo banks, de novo thrifts, Tier 1 capital, prompt correction action, cross-guarantee obligations

By a vote of 4-1 (with OTS Acting Director John Bowman dissenting), the board of the Federal Deposit Insurance Corporation (FDIC) adopted a final policy statement establishing guidelines for private equity investors in failed banks or thrifts. The "Final Statement of Policy on Qualifications for Failed Bank Acquisitions" (Policy Statement) ...

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