FDIC Eases Rules On Private Investment In Banks

Law360, New York (August 26, 2009, 6:06 PM EDT) -- The Federal Deposit Insurance Corp. adopted a final statement of policy on Wednesday that is designed to make it easier for private investors to buy failed banks.

Eighty-one banks have already gone under this year, compared to 25 in 2008, three in 2007 and zero in 2006. This has caused the FDIC's deposit insurance fund to shrink considerably and has prompted calls for private capital investments in the banking industry.

According to the policy statement, a failed bank buyer must maintain a capital commitment of at...
To view the full article, register now.
Law360 Pro Say Podcast
Check out Law360's new podcast, Pro Say, which offers a weekly recap of both the biggest stories and hidden gems from the world of law.