New Rules Pave way for Buyout Firms to buy Banks
As expected, the FDIC relaxed the federal requirements for private equity firms that acquire banks. Here, courtesy of investment adviser Concept Capital, are the highlights of the new rules: Discretion. The proposal gives the FDIC the discretion to waive any requirement if it is in the best interest of the FDIC. Retroactive. The agency clarified that these changes only apply to future deals and do not impact existing private equity investments. Source of Strength. The FDIC dropped this contentious provision, which as initially proposed could have required PE firms to be a source of strength to the bank. Six Month Review. The agency agreed to automatically review in six months whether the restrictions on private equity were protecting the deposit…
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