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Alerts
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FDIC Proposes New Tougher Qualifications for Failed Bank/Thrift Acquisitions
July 2, 2009
Today, the Federal Deposit Insurance Corporation (“FDIC”) issued a proposed “Statement of Policy on Qualifications for Failed Bank Acquisitions” (the “Proposed Policy Statement”) with a request for comments. The purpose of the Proposed Policy Statement is to provide guidance to “private capital investors” interested in acquiring or investing in failed insured banks or thrifts (collectively referred to herein as “banks”) regarding the terms and conditions for such investments or acquisitions. (The Proposed Policy Statement does not purport to change the requirements for the acquisition of banks outside of receivership.) The proposed rules do not affect any of the existing requirements under federal banking law (including the requirement that any investor acquiring a 25% or greater voting interest in a bank must register as a bank holding company). Instead, the FDIC would impose significant new requirements on “private capital investors” that make FDIC-assisted acquisitions of failed banks (“Investors”). Such new requirements include capital support and cross-guarantee obligations, as well as new prohibitions on transactions with affiliates and “secrecy jurisdiction” investors that are not subject to comprehensive consolidated supervision.
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